Lime Rock collects $410m for second resources fund

The energy-focused private equity firm, which fell short of its $600m target, called its most recent fundraise a 'gratifying and humbling' experience.

Energy-specialist private equity house Lime Rock has closed its second oil and gas resources fund below target, garnering $410 million in commitments. The fund began marketing in August 2008 and had been targeting $600 million.

“When we launched the fundraising for Lime Rock Resources II, we had no idea of the economic turmoil that was to come only a month after the launch,” co-chief executive Eric Mullins said in a statement. “To be able to count on the continued support of so many of our existing investors and to be able to win the trust of quite a few new investors during this challenging period has been a gratifying, and humbling, experience.”

The Houston, Texas-based firm said commitments came from 35 institutional investors. About 68 percent of commitments came from the firm’s existing investor base.

Lime Rock’s first fund closed in 2005 on $456 million. The fund – which like its predecessor, will invest in low risk oil and gas properties – has made eight investments totalling $600 million to date and since its close has returned around one-third of capital to its investors.

Following the close of Lime Rock Resources II, the two resources funds have a combined acquisition capacity of around $1.5 billion and equity capital of $866 million.

Lime Rock was advised by law firm Thompson & Knight on the fundraising.

The firm now manages private equity funds totalling $3.9 billion.