Denham beats target with $3bn final close

Denham Capital has surpassed its $2.5bn target for its latest fund, raising $3bn in just eight months for its sixth energy-focused vehicle.

Denham Capital has concluded fundraising for its sixth private equity fund, holding a final close for Denham Commodities Partners Fund VI on $3 billion, it said in a statement.

The firm surpassed its target of $2.5 billion and closed at its hard cap. The fund was launched in July last year, and held a first close in October with about $1.7 billion raised. Park Hill Group acted as placement agent on the fundraising, with Latham & Watkins handling the legal side of the fund formation.

The fund, which was oversubscribed, is Denham’s sixth energy and resources-focused vehicle, and will be used to make investments in companies in the sector where there are “value dislocations”, the firm said.

Denham said almost 90 percent of investors in its previous fund had committed the new vehicle. LPs in the fund include Arizona Public Safety Personnel Retirement System, MassPRIM, Pennsylvania Public School Employees’ Retirement System and the Washington State Investment Board, according to PEI company PE Connect. Other investors include foundations, sovereign wealth funds, endowments and family offices, the firm said.

A limited partner interviewed by Private Equity International last year described Denham’s LP base as “blue chip” and praised the firm’s “really strong team”. The firm’s experience in the traditionally popular sector appears to have gained its fund traction in the market, together with its flexibility to invest beyond just oil and gas, including mining companies, alternative energy and commodities like metal.

Stu Porter, chief executive of Denham, said in a statement: “We are very pleased to have completed the Fund VI raise in what remains a challenging global fundraising environment. Thanks to very strong relationships with our limited partners, who share our belief that investment opportunities will continue to be robust around the sustained global demand for energy and resources products and services, we are able to quickly return our undivided attention to capitalizing on opportunities in these sectors.”