EnCap raises $792m for midstream energy

Fundraising was a 'long and difficult process' for the North America-focused fund, which has already spent $215m of the money it has raised.

EnCap Investments, an oil and gas-focused private equity firm, has reached final close on its energy infrastructure fund on $791.6 million, according to a statement.

The EnCap Energy Infrastructure Fund provides growth capital to businesses in the midstream sector of the oil and gas industry in North America. Examples include natural gas transportation facilities, such as pipelines.

The fund has been in development at least since December 2008, when EnCap managing partner and co-founder Gary Petersen told delegates gathered at the California Infrastructure Summit in Anaheim that the firm was planning to raise a $1 billion midstream-focused oil and gas fund. 

Petersen said in the statement that the fundraising was “a long and difficult process” but the firm actually exceeded its target by closing on $791 million this month, versus a target of $750 million.

The fund is advised Flatrock Energy Advisors, a boutique midstream energy advisory firm that teamed up with EnCap to become the investment team for the fund. Flatrock is now known as EnCap flatrock Midstream, according to the statement.

The team has already invested $215 million of the money they’ve raised for the fund by backing five portfolio companies. These include three midstream oil and gas businesses based in Texas and one in Colorado.

A spokesperson for EnCap did not return a request for comment before press time.