Firm: The Blackstone Group
Fund: Energy-focused fund (exact name not known)
Target: $3 billion
The firm would be the largest diversified investment firm investing in the industry, wrote Bloomberg, which broke the story.
Besides deal opportunities, Blackstone perhaps sees a fresh source of fee income considering energy funds are among the most popular right now for pension funds and other fund investors. Through the third quarter, limited partners committed close to $8 billion to energy funds this year, roughly $2 billion more than turnaround funds, which were the second-most popular focused-fund strategy, according to data Buyouts compiled.
Sponsors, meanwhile, have been ramping up their investments in the sector following a drop in activity with the economic downturn. U.S.-based sponsors had closed 39 control-stake deals with a disclosed deal value of $5 billion in 2011 as of Sept. 30, putting them on pace to outdo last year’s results, when firms closed 44 deals with a disclosed deal value of $2.8 billion (see related feature, page XX).
Blackstone joins other large firms, such as
A spokesperson for Blackstone declined to comment.