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Riverstone Holdings targets $8 billion for new fund

The vehicle will focus on global energy and power investments

Riverstone Holdings is in market with its latest fund targeting $8 billion for global energy and power investments, according to a regulatory filing.

Riverstone declined to comment on fundraising.

Like predecessor funds, Riverstone Global Energy and Power Fund VI will focus on investments in the exploration & production, midstream, energy services and power & coal subsectors of the energy industry.

Known investors in the fund include the Houston Municipal Employees Pension System, which made a $25 million commitment at the end of last year.

Riverstone’s previous fund closed on $7.7 billion in 2013. Houston Municipal was also an investor in that fund as was CalPERS. Fund V is posting a 30.3 percent net IRR, according to CalPERS performance data.

In September, Riverstone went in with EnCap Investments, and Infraestructura Institucional on a $525 million commitment to Sierra Oil & Gas S. de R.L. de C.V., Mexico’s first independent exploration and production company. All three investors retained the option to double their investments, as PEI reported at the time. 

A handful of other mega-funds are in market this year, in what is shaping up to be another frothy fundraising environment. Recently released data from Palico, an online private equity marketplace have Blackstone, Oaktree, TPG, and Lexington Capital Partners all in market for funds targeting north of $7 billion each.