Energy Firm Nears Close For Fifth Fund

Firm: Quantum Energy Partners

Fund: Quantum Energy Partners V LP

Target: $2.7 billion

Placement Agent: Champlain Advisors

Quantum Energy Partners is well on its way to hitting the $2.75 billion target for its fifth fund. A source familiar with the fundraising told Buyouts the Houston-based shop has so far raised around $2.3 billion.

Quantum Energy launched fundraising in the spring and held a first close of $2 billion in July. It’s expected to hold a series of closings through the fall. The exact close date has not been determined.

The firm is currently waiting on a few “gorillas”—large institutional investors—to make up their mind on the fund, our source said. Investors who have signed on so far include the Nebraska Investment Council, which committed $20 million, and the New Mexico Public Employees Retirement Association, which committed $35 million, according to published reports.

Champlain Advisors is helping the firm raise the fund.

The firm cuts checks for $50 million to $500 million in companies with enterprise values of up to $1 billion, primarily in the oil and gas upstream and midstream sectors. It also considers deals in the oil field services and equipment, coal, power generation and transmission, and renewable and alternative energy sectors. It typically holds companies for three to seven years.

The fund will be a hefty increase from its fourth fund, a $1.32 billion vehicle raised in 2006. The firm has beefed up its executive staff: it recently hired Dheeraj Verma, a former executive director and power mergers and acquisition banker at JPMorgan, to lead its power investments; and Cedric Burgher, formerly a senior vice president and chief financial officer at engineering and construction company KBR, as chief operating officer.

S. Will Vanloh, Toby Neugebauer and A.V. Jones founded the firm in 1998.

Firm officials declined to comment.