Q&A On First Reserve's Singapore Exploration Deal
First Reserve is a Greenwich, Conn.-based buyout shop sitting on nearly $9 billion to invest exclusively in the energy sector. Today the firm announced it would commit $500 million to back a management team in building a new energy exploration company called KrisEnergy Holdings, to be based in Singapore. It's the second time First Reserve pursued this management team. Last year the trio of Keith Cameron, Chris Gibson-Robinson and Richard Allen were preparing to sell Pearl Energy, the exploration and production company they formed in 2000. First Reserve was interested but shied away because valuations were too rich, according to Will Honeybourne, a managing director with First Reserve. But the firm left the door open for future collaboration with the trio, which eventually led to KrisEnergy. The $500 million in equity will go towards a roll-up strategy. KrisEnergy's managers have already been engaging potential exploration, development and production targets in the Southeast Asia region, Honeybourne said.
