CalPERS commits $400m to Riverstone

CalPERS has re-upped to its sixth Riverstone Holdings fund, which is targeting $6bn for investments in the energy and power sectors.

The California Public Employees’ Retirement System re-upped with Riverstone Holdings to the tune of $400 million, according to retirement system documents. 

Riverstone Global Energy and Power V is targeting $6 billion for investments in the energy and power sectors. CalPERS invested in five of Riverstone’s previous funds — including infrastructure and renewable energy vehicles — all of which are managed alongside The Carlyle Group. Global Energy and Power IV had generated a 19.1 percent net internal rate of return and a 1.48x investment multiple as of 30 June, according to CalPERS. 

Global Energy and Power V is the firm’s first fund since concluding its relationship with Carlyle in 2011. The fund has generated strong interest from investors, sources told Private Equity International last year, citing the firm’s “constant” level of deal flow. 

The firm announced several acquisitions in 2012, including the $7.15 billion deal for El Paso Corporation’s exploration and production business. Riverstone’s acquisition of EP Energy alongside Apollo Global Management and the Korea National Oil Corporation was the largest private equity deal of the year.  

In December, the firm acquired three coal-fired power plants in Maryland for portfolio company Raven Power Holdings. Later that month, Riverstone announced a $600 million investment in Fieldwood Energy, which will develop traditional oil and gas assets. 

Riverstone was founded in 2000 by David Leuschen and Pierre Lapeyre and has invested around $20.2 billion across 92 deals in its history, according to a December press release.