Louisiana Teachers’ re-ups $50m to EnCap

The $13.7bn Teachers’ Retirement System of Louisiana is targeting between $300m and $400m in private equity commitments this fiscal year, spread between five or six funds.

The Teachers’ Retirement System of Louisiana approved a $50 million re-up to EnCap Energy Capital Fund IX at its meeting Tuesday, a board spokesperson told Private Equity International

The commitment is Louisiana Teachers’ first to private equity in the 2013 fiscal year. The $13.7 billion retirement system is targeting between $300 million and $400 million in commitments across five or six funds this fiscal year, according to a Hamilton Lane report made available by the retirement system.

Louisiana Teachers’ previously invested in EnCap Energy Capital Fund VIII, a $3.5 billion 2010 vintage that had generated a 41.1 percent net internal rate of return as of 30 September, according to the report. 

Louisiana Teachers’ has also co-invested with the firm in the past, the spokesperson said. 

EnCap is targeting $4.25 billion with a $5 billion hard-cap for its latest energy capital fund. The Texas-based firm will invest in oil and gas assets in the US and Canada, according to the Hamilton Lane report, committing between $100 million and $300 million in equity per deal. 

“EnCap targets [management] teams with technical and operational expertise as well as relevant track records,” according to the report. “The general partner has generated attractive returns with both new and repeat management teams, demonstrating their ability to both attract and retain talent.”

The report lists EnCap managing partners David Miller, Gary Peterson, Martin Phillips and Robert Zorich as key men on the fund. 

The firm, which has offices in Dallas and Houston, raised three reserve acquisition funds and three mezzanine funds before transitioning into private equity investing in 1994. EnCap has invested approximately $7.6 billion across 190 different companies since inception, according to its website.