Energy-focused LBO Funds in the Spotlight


September 13, 2012

EnCap Investments LP, a 12 year old PE fund manager that has backed about 190 oil and gas companies, is reportedly raising USD 4.25 billion for a new fund to invest in gas and oil exploration ventures, according to Bloomberg.


It is just one of several large energy firms currently raising funds, including Riverstone Holdings LLC, First Reserve Corp. and Kayne Anderson Capital Advisors LP.


The WSJ also wrote about the interest in energy dealmaking this week, pointing out that midstream-oriented funds are particularly attractive to LPs at the moment with some USD 5.1 billion in allocations in recent months.


The trend is a natural progression for these firms which have poured billions into oil and gas exploration and production companies over the past five years. Interestingly, energy focused LBOs have attracted 16% of the total of buyout fund allocations this year, which is more than infrastructure, distressed, and large-buyout fund allocations as the graphic here illustrates. (Image source:

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