Tennessee commits $50m to co-invest

The state’s consolidated retirement system contributed to Denham Capital's $750m oil and gas co-investment fund.

The Tennessee Consolidated Retirement System committed $50 million to Denham Capital Management’s Commodity Partners sixth oil and gas co-investment fund, according to a spokesperson from the system.

Pennsylvania Public School Employees’ Retirement System was also advised to commit $25 million to the co-investment fund on 11 June, according to a memo from Charles Spiller, PSERS’ managing director of private markets and real estate.  The pension fund had pledged $100 million to Denham’s flagship vehicle in January 2012, but the fund was oversubscribed, forcing PSERS to reduce its commitment to $75 million. As a result, Spiller recommended the board commit the extra $25 million to the co-investment fund.
 
The co-investment fund is targeting $750 million and will invest solely in oil and gas sectors, according to the Pennsylvania memo.
 
Denham was unavailable for comment at press time.
 

Oil and gas
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The fund’s flagship vehicle, closed on its $3.05 billion hard-cap in April 2012. About 90 percent of the fund’s commitments came from re-ups from its prior vehicle, Private Equity International previously wrote. The fund, which launched in 2011, was targeting $2.5 billion.
 
Denham has $7.3 billion in assets under management, according to PEI’s Research & Analytics division. The firm seeks global buyouts between $50 million and $250 million. It targets sectors including, oil and gas, mining, power and renewable. The firm’s fifth fund, a 2008 vintage, raised $2 billion.
 
Stuart Porter founded Denham, as a spin-off of his Sowood Capital Management, in 2004. But earlier this year, co-founder and managing director William Zartler left the firm for an unknown reason, PEI previously reported. At the same time, Denham also removed another high-level executive, Joseph Casey, from its website. It is also unclear why Casey, who was the managing director for strategy and development, was removed from the list.