Riverstone Holdings has closed its fifth global fund on $7.7 billion, well above its original target of $6 billion, the firm announced Wednesday.
Riverstone Global Energy & Power V, launched in late 2011, had collected about $6 billion within the first nine months of launching the fundraising, according to a person with knowledge of the firm. Fund V included new investors from the US, Canada, Europe, Asia, the Middle East and Australia.
“With Fund V, we have been fortunate to build upon our existing relationships with many of the world’s leading investors while significantly expanding our limited partner base with new strategic investment partners,” Elizabeth Weymouth, Riverstone partner responsible for fundraising and investor relations at the firm, said in the statement.
Riverstone pursues a strategy of building energy and power businesses globally with trusted management teams. Fund V has already deployed $2.3 billion in 19 companies, including eight repeat management teams, Riverstone said in the statement.
Fund V is Riverstone’s first fund since it concluded its relationship with The Carlyle Group last year. Carlyle/Riverstone Global Energy and Power Fund IV was generating a 17.2 percent internal rate of return and a 1.5x multiple as of 30 September, 2012, according to performance information from the California Public Employees’ Retirement System.
Last year, Riverstone announced the investment of up to $500 million in Sage Midstream, a newly formed company focused on natural gas liquids gathering, transportation and processing in North America, a deal the firm announced last September.
Fundraising around energy strategies has remained steady for the past few years. Currently, there are 78 energy focused private equity funds in the market seeking an aggregate $49.4 billion, according to PEI’s Research & Analytics division.