Carnelian Energy Capital held a final close of its debut private equity fund, Carnelian Energy Capital, on its hard cap of $400 million, the firm said.
Carnelian launched the fund in September, according to PEI’s Research & Analytics division. It did not use a placement agent.
Carnelian partner Daniel Goodman told Private Equity International that the LP base is “endowment and foundation-heavy.”
When asked about the reason for LPs’ interest, Goodman said, in addition to team, experience and strategy, he felt Carnelian’s investors shared their view that the current energy landscape presents an attractive investment opportunity.
The fund focuses on the lower and middle market energy investments of between $35 million and $75 million of equity in the North American upstream, midstream and oilfield services sectors, he said.
“The current energy landscape presents exciting investment opportunities, especially in the underserved lower and middle market oil and gas sector,” Goodman said in a statement.
Another partner, Tomas Ackerman, said Carnelian strives to be a value-added partner.
Goodman another partner Tomas Ackerman were both senior investment professionals at Natural Gas Partners (NGP) before founding Carnelian in June. Founded in 1988, NGP manages a family of funds investing PE capital in oil and gas production and oilfield services companies. It is a subsidiary of NGP Energy Capital Management.
Kirkland & Ellis served as legal counsel to the fund.