Report: First Reserve reaches $8bn for 12th fund

The fund’s committed capital already eclipses the firm’s 11th energy buyout fund, which closed on nearly $8bn in 2006. The target is $12bn, which would make it the largest ever private equity fund to focus on the sector.

First Reserve, the energy-focused global private equity firm based in Connecticut, has reached an interim close on $8 billion for its 12th energy fund, according to media reports.

First Reserve began marketing the fund earlier this year. It is targeting $12 billion, according to Probitas Partners’ 2008 Private Equity Deskbook, with a hard cap of $16 billion. If the fundraising is successful, it will become the largest ever private equity fund to focus on energy assets.

The fundraising already eclipses the firm’s 11th fund, which closed on nearly $8 billion in 2006 and is the largest energy fund raised to date. Prior to that, the firm’s 10th fund closed on $2.4 billion in 2004.

In February, First Reserve agreed to buy CHC Helicopter, the world’s largest provider of helicopter services to the offshore oil industry, for C$3.7 billion (€2.3 billion; $2.9 billion). It was the largest-ever LBO in the oilfield services industry, according to a statement from First Reserve and CHC. First Reserve has invested in the energy sector for 25 years.

A report of the interim close first appeared on PE Insider. A spokesperson for First Reserve declined to comment.