Houston-based energy investor Rockland Capital has closed its Fund II on its $425 million target.
Rockland launched Fund II in June and has already agreed to make one investment to date, acquiring three power plants from NYSE-listed Ameren Corporation in October. The firm acquires and develops power and energy assets in North America and Europe. Rockland did not use a placement agent for the fund.
“I think [LPs] appreciate the operational focus that we have and the element of distress or special situations that we focus on,” Shane Litts, a partner at Rockland, told Private Equity International. “We’ve kept our fund size small relative to some of the other power funds out there and they appreciate us sticking to the strategy that we’ve outlined, looking at projects that are a little off the beaten path.”
Roughly two thirds of limited partners in the fund are existing Rockland investors, including several university endowments. Fund II marks the first time Rockland attracted commitments from insurance companies and non-US investors.
The firm’s first institutional fund held a final close on $333 million in December 2010 and completed its first investment that year, acquiring an interest in a natural gas power facility in California.
Prior to raising its first fund, Rockland operated a $120 million “pledge fund”, meaning it invested on a deal-by-deal basis. All six investors that participated in the firm’s pledge fund committed to Rockland’s debut closed-ended vehicle, which altogether had roughly 30 LPs.
Rockland Capital was founded in 2003 in Houston and has an office in New York.