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NGP picks up $100m from Oregon

NGP’s previous nine funds have generated a net IRR of 22%, influencing the $75bn pension fund’s commitment to NGP Natural Resources X.

The Oregon Investment Council has committed up to $100 million in Natural Gas Partners Natural Resources X, which is targeting $4 billion for investments in North American natural resource properties.

The fund, which launched in February, will follow the firm’s traditional energy sector strategy, focusing on businesses in the oil and natural gas production, energy midstream and oilfield services industries. The general partner is committing 2.8 percent to the fund with typical carried interest, according to documents obtained from the OIC. 

The firm did not use a placement agent.

The Texas-based private equity firm has apparently rolled some of its strategy for a scrapped $4 billion vehicle called Adaptation Partners into the new fund, which may commit up to 10 percent of its capital to the food, agriculture, water resources and services industries, according to Oregon pension documents.

The firm’s track record across its previous nine funds contributed to the council’s decision to commit to the fund, Oregon’s staff assessment said. Since 1988, NPG funds have generated net internal rate of return of 22 percent. Last month, Minnesota’s State Board of Investments committed up to $150 million to the fund.