A new $1.1 billion (€910 million) fund established to capitalise on growing opportunities in the energy sector has been launched by Carlyle Group and Riverstone Holdings.
The new fund is around five times larger than its predecessor, the Carlyle/Riverstone Global Energy & Power Fund I, which closed at $222 million in February 2001.
Fund II, which is nearly 50 percent committed, makes investments globally in the energy and power industry with a primary focus on the midstream, upstream, power and oilfield service sectors.
“We continue to see great opportunities for private equity in the energy and power sectors as evidenced by the strength of our current portfolio,” said David Leuschen, co-founder and co-head of Riverstone. “Though this is the final close, we’ve already committed nearly half the fund to seven promising investments.”
Deals completed so far by the fund include: Legend Natural Gas, a natural gas exploration and production company; CDM Resource Management, a natural gas compression services company; and Magellan Midstream Partners, an energy transportation, storage and distribution company acquired jointly with Madison Dearborn.
Carlyle and Riverstone are co-general partners of the fund. Riverstone is a New York-based energy and power focused private equity firm founded in 2000, which has approximately $1.5 billion under management. Carlyle Group is a global private equity firm with nearly $18 billion under management.