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Capital gathered for closed-ended
private equity funds focused exclusively on energy had reached just $3.31
billion by the end of July as the energy market reacted to crude oil prices
hitting a near 13-year low in January.
According to data from PEI
Research & Analytics, this compares with $31.25 billion gathered during the
market peak of 2013 and $22.77 billion last year.
Despite this fall in
fundraising, investor sentiment towards the market appears positive. Three
energy-focused private equity vehicles held a final close this month; AG Energy
Credit Opportunities Fund, Pelican Energy Partners II and POEP II Rimrock
Co-Investment gathered $975 million collectively. The funds received
investments from limited partners including Contra Coast County Employees’
Retirement Association and San Francisco Employees’ Retirement System.
A further pocket of interest
in the energy industry can be found in the debut energy-focused fundraising
market. Over the past two years a number of first-time energy-specific vehicles
have been raised by firms, both established and new. Among these is Warburg Pincus,
which held a final close on the oversubscribed Warburg Pincus Energy fund in
October 2014 at $4 billion.
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