Quantum collects $2.5bn for Fund V

Quantum Energy Partners has collected $2.5 billion for its fifth buyout fund focused on investments in North American energy startups, oil and gas companies and power opportunities.

The firm, founded in 1998, had an original target for the fund of $2.7 billion. Fundraising took about a year, according to a source with knowledge of the situation. Quantum used Champlain Advisors as placement agent.

The $2.5 billion represents a 90 percent increase over the firm’s prior fund, which closed on $1.32 billion in 2007. Fund V attracted a “substantial” amount of new LPs, a source said. The firm declined to name the new LPs.

Investors in Fund V include the Alaska Permanent Fund, Hatteras Investment Partners, the New Mexico Public Employees’ Retirement Association, the Ohio School Employees’ Retirement System and the Maryland Retirement System.

“We believe that over the next several years the favourable investment environment in the energy industry will afford Quantum many opportunities to invest substantial amounts of capital in highly attractive situations,” Wil VanLoh, Quantum’s president and chief executive officer, said in a statement.

A source said Quantum has seen many opportunities in the energy sector, much of it driven by the economic downturn. Companies in the sector are in need of liquidity, and Quantum will be able to fill that need, the source said.

The firm has made one investment from the fund, acquiring a majority stake for $100 million in Crump Energy Partners. Crump will acquire, exploit and develop oil and gas properties in the Permian Basin, which is located in west Texas and southeastern New Mexico.

Champlain Advisors served as placement agent for the fundraise. Terry Crikelair, managing partner of Champlain Advisors, said in a statement: “Fortunately, Quantum’s conservative approach positioned them well through the financial crisis and gave investor’s confidence to commit to Fund V.”

Quantum has more than $5.7 billion under management.