Quantum reaches $2bn for fifth fund

The Houston-based energy investor started marketing the fund in the second quarter of 2008 and is targeting $2.75bn in total commitments. A first close was held in July, with subsequent closings since then.

Houston-based private equity firm Quantum Energy Partners has now reached upwards of $2 billion in committed capital for its fifth global energy private equity fund, according to a market source familiar with the firm.

The fund is targeting $2.75 billion in total commitments. Quantum started marketing the fund in the second quarter of this year, held its first close in July and has held subsequent closings since then, the source said.

Energy: attracting
private capital

At $2 billion, Quantum Energy Partners V is one of the largest energy funds currently in the market. Connecticut-based First Reserve is reportedly $8 billion into raising its 12th private equity energy buyout fund targeting $12 billion, while New York-based Energy Capital is reportedly beginning a $3.5 billion fundraising effort for its second energy buyout fund.

The strategy and focus for Quantum’s fifth fund will be the same as its previous funds, which were primarily focused on providing equity commitments between $50 million and $500 million to the oil and gas upstream and midstream sectors. Quantum Energy Partners IV closed on $1.32 billion in February 2007, exceeding its initial target of $750 million.

Last month, Quantum participated in a consortium investing $140 million in equity to form Houston oil and gas explorer Denali Oil & Gas Partners III. Denali will explore and buy land in south Texas.

Founded in 1998, Quantum has more than $5 billion in assets under management and, excluding Quantum Energy Partners V, $3.2 billion of capital under management. Of that $3.2 billion, $2 billion is in its family of private equity funds and $1.2 billion is in Quantum Resources, a direct property acquisition fund co-managed by Quantum and Aspect Energy.

Champlain Advisors is acting as placement agent for Quantum.