Oil prices have fallen to less than half the levels of their most recent peak in 2012, but that doesn’t appear to have deterred investors. Eight of the 10 biggest funds to close since 2012 comfortably exceeded their targets.
All the energy funds apart from the Brazil-focused Fip Sondas are US-based and have either a North American or global focus, with the big pension funds among the institutional investors.
The biggest fund, Riverstone Global Energy and Power Fund V, counted both the California Public Employees’ Retirement System and the Canada Pension Plan Investment Board among its backers. Its US investments included a commitment of up to $200 million in Oklahoma-based oil firm Eagle Energy Exploration and up to $167 million in Houston-based Rock Oil Holdings.
Riverstone started raising its successor energy fund, Riverstone Global Energy and Power Fund VI, in February 2015, targeting $8 billion for global energy and power investments, according to a regulatory filing. By September 2015, it had already raised $4.2 billion for the vehicle.
Others seeking to raise new funds include EIG Global Energy Partners, which launched a private debt fund in 2015 and has also teamed up with private investment management firm Triloma Financial Group to launch Triloma EIG Global Energy Fund, an unlisted investment company that will provide individuals access to global energy debt investments, aiming to raise $500 million a year.