EnCap Flatrock has closed its Midstream Fund III on $3 billion, exceeding its $2.25 billion target, according to a statement.
Fund III was oversubscribed and closed after four months in market. The fund will follow the same investment strategy as EnCap Flatrock’s prior funds, investing in oil and gas storage and transportation companies in the North American energy sector. Fund III received commitments from existing limited partners and new LPs including corporate and public pension plans, family offices, insurance companies, university endowments and foundations.
“We’re enthusiastic about our industry’s future and pleased to have a new pool of capital to put to work,” EnCap Flatrock founder and managing partner Bill Waldrip said in the statement. “We are actively looking for new management teams that are seeking value-added capital and are aligned with our approach.”
LPs in the fund include the Public Employees Retirement Association of New Mexico and the Hartford Healthcare Corporation, according to Private Equity International’s Research and Analytics division. The Teachers’ Retirement System of Louisiana also committed $25 million to the fund, PEI reported.
EnCap Flatrock’s Fund II closed on its $1.75 billion hard-cap in 2012 and has invested in 10 portfolio companies. Fund I closed on $791 million in 2010.
EnCap Investments and Flatrock Energy Advisors merged in 2008 to form EnCap Flatrock Midstream. The firm has invested in 16 portfolio companies and has realised about $4 billion since inception.
EnCap Flatrock is based in San Antonio, Texas and has an office in Edmond, Oklahoma.