Energy-focused funds searching for LPs

A number of energy-focused buyout funds are banging on LP’s doors, looking for commitments:

• The Energy Private Equity Group of Kayne Anderson Capital Advisors has planned a first and final close for its fifth fund. The effort has a $1.6 billion target, a jump from the Houston-based firm’s prior $950 million fund, which closed in 2006. The effort is loosely slated to close on Nov. 20.

The majority of Kayne Anderson’s energy fund LPs are university endowments. The firm also takes investments from high net worth individuals.

Quantum Energy Partners’ fifth fund has raised more than $2 billion in commitments to date, according to a source familiar with the firm. The energy-focused buyout firm will issue rolling closes on commitments until it reaches its target of $2.75 billion.

Limited partners include Massachusetts Pension Reserves Investment Management Board, Nebraska Investment Council, New Mexico Public Employees Retirement Association and CPP Investment Board in addition to several endowments and corporate and international investors. Champlain Advisors is serving as the firm’s placement agent.

The firm raised $1.32 billion for its fourth fund in 2006.

First Reserve Corp. is in the midst of raising its 12th fund. The Greenwich, Conn.-based firm is targeting $12 billion for the fund, with a $16 billion hard cap. Thus far, the firm has raised more than $4.5 billion in commitments from 82 investors for fund XII, according to a recent regulatory filing.

At least eight return backers recently committed more than $1.3 billion.

First Reserve buys stakes in worldwide companies in a variety of energy industry sectors, seeking investments ranging from $200 million to $1.5 billion.

• Houston, Texas-based EnCap Investments is raising a new fund focused on investing in midstream infrastructure investments, say sources familiar with the effort. The fund is targeted to raise about $1 billion.

Last year, the firm raised $2.5 billion for its seventh fund, EnCap Energy Capital Fund VII, to invest in the upstream oil and gas industry. EnCap raised $1.5 billion for its sixth fund in 2006.

Tenaska Capital Management, the buyout arm of Omaha, Neb.-based Tenaska Energy, is set to close fund-raising for its second fund at the end of October, says a source familiar with the situation. Underlining robust investor interest in the energy sector, commitments for Tenaska Power Fund II are expected to come in no less than the hard cap of $2.5 billion, well above a target of $1.5 billion, the source says. —PE Week staff