Riverstone Holdings will invest up to $500 million in Three Rivers III, a newly formed oil and gas company in Austin, Texas. The company's management team will also invest, although that amount is unknown.
The Riverstone commitment comprises up to $333 million from Riverstone Global Energy and Power Fund VI and up to $167 million from Riverstone Energy Limited.
The investment is the third partnership between Riverstone and Three River III's management team. Riverstone previously exited Three Rivers Operating Company which it owned with Carlyle, in a $1 billion sale to Concho Resources in 2012. The firm has also exited its interest in Three Rivers Natural Resource Holdings II for an undisclosed sum.
The Three Rivers III team will continue to be led by Mike Wichterich who will serve as CEO and President. The company will continue to focus on oil and gas acquisition opportunities in the Permian Basin as it has in prior iterations.
Riverstone is currently in market with a $8 billion energy fund, as PEI reported in February. Known investors in the fund include the Houston Municipal Employees Pension System, which made a $25 million commitment at the end of last year, and the Teachers' Retirement System of Illinois.
Riverstone's previous fund closed on $7.7 billion in 2013.
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.