Trilantic and Riverstone partner in oil and gas deal

The investment comes as Trilantic seeks $2bn for its fifth fund and Riverstone targets $6bn for its Global Energy and Power Fund V.

Trilantic Capital Partners and Riverstone Holdings have invested in Trail Ridge Energy Partners II, a newly formed oil and gas exploration and production company focused on Texas’ Permian Basin.

Trilantic will lead the investment with a majority stake in the company, while Riverstone will be a significant minority partner, a source with knowledge of the transaction told Private Equity International. The investment is Trilantic’s first announced transaction of 2013 and Riverstone’s fifth. Riverstone invested up to $200 million in oil tanker company Ridgebury Tankers earlier this month and acquired oil and gas-related specialty products manufacturer Utex Industries in March. The firm also backed in exploration and production company ILX Holdings II in February and oil and gas leasing and drilling company Venado in January.

The investment in Trail Ridge comes as both Trilantic and Riverstone seek to close their latest private equity funds. Trilantic is seeking $2 billion for its fifth flagship fund and had raised at least $923 million as of last August, according to documents filed with the US Securities and Exchange Commission. The fund has a $3 billion hard-cap and will invest primarily in high growth mid-market companies in the consumer, financial services, business services and energy sectors.

Riverstone is raising its Riverstone Global Energy and Power Fund V, which has raised at least $5 billion toward a $6 billion target.

Trilantic and Riverstone declined to comment. 

Riverstone’s prior four funds were raised in partnership with The Carlyle Group. The Riverstone/Carlyle Global Energy and Power IV fund raised $6 billion in 2009 and its 2006 predecessor raised $3.8 billion. Riverstone concluded its relationship with Carlyle in 2011.

A number of energy-focused funds have come to market in recent months, some of which have hit ambitious targets in a very short amount of time. In February, EnCap Investments closed its Fund IX on its $5 billion hard-cap, making it the firm’s largest-ever fund. The fund was in market for just five months.

Other energy funds in market include First Reserve Corporation, which is targeting $5 billion, according to SEC documents. Post Oak Energy Capital also is expected to launch a fundraising process for its next oil and gas-focused private equity fund before the end of 2013.