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

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.