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EIV beats target with $267 mln in first institutional fundraise

Firm: EIV Capital LLC

Fund: EIV Capital Fund II LP

Target: $200 mln

Amount raised: $267 mln

Placement Agent: Champlain Advisors

The Houston-based firm, founded in 2009 and led by Patti Melcher, a veteran of energy shop SCF Partners, plans to invest $10 million to $40 million per target after a fruitful effort raising capital.

EIV raised $50 million from friends and family for its first fund, before drawing in a diverse base of limited partners including public and private pensions, fund of funds, consultants and family offices.

Melcher, managing director of EIV Capital, said the current investment environment with low oil prices “will leverage our team’s operating and financial expertise to identify and capitalize on opportunities to partner with great management teams seeking to grow through this cycle,” according to a prepared statement.

Melcher joined EIV in 2009 when the firm was forming after working at SCF Partners starting in 1989. She worked with Sandefer Capital Partners in 1995 to develop a strategy for a $500 million private equity energy fund. In 1997, she founded Allegro Capital Management and worked as interim CEO of Petrocom Energy Ltd during her time there, according to her biography on the EIV Capital website.

EIV Capital was founded by A. Anthony Annunziato, now a member of the firm’s investment committee. His experience includes about 20 years at Citigroup and a predecessor firm specializing in energy futures brokerage and other services. Other key EIV Capital executives include Jennifer Gottschalk and David Finan, both directors, and Carl Thomason, operating partner.

Fund II will focus on midstream, energy-related services, and expanded natural gas investments.

Overall, energy investing has come under scrutiny as low prices cause producers to cut back capital spending on drilling. But private equity pros have said that firms with dry powder may be in a position to take advantage of distressed assets.