Energy & Minerals Group seen hitting $3.5 bln cap on Fund III

Firm: Energy & Minerals Group

Fund: Energy & Minerals Group Fund III

Target: $3.5 billion

Amount Raised: At least $1.2 billion

Placement Agent: Credit Suisse

Founded in 2006 and with offices in Houston and Dallas, Energy & Minerals Group  (EMG) invests in the global natural resource industry, including the upstream and midstream segments. The firm has about $8.2 billion of total investor commitments including co-investments, with more than $4.2 billion allocated across the energy sector, according to a statement from the firm late last year.

Raymond, son of former Exxon CEO Lee Raymond, has deep experience in the energy patch as former CEO of Plains Resources Inc, the predecessor of Paul Allen’s Vulcan Energy Corp. John Raymond also worked as CEO of Plains Exploration and Production Co.

EMG focuses on equity investments of $150 million to $400 million, focused on hard assets such as pipelines.

Among its recent deals, EMG teamed up with MarkWest Energy Partners LP to invest in Gulfport Energy Corp’s formation of Ohio Condensate Co, a seller of stabilization and potential gathering services in the Utica shale, according to a December announcement.

EMG also led a $1.7 billion commitment to ex-Chesapeake Energy Corp CEO Aubrey McClendon’s American Energy – Utica (AEU), a unit of  American Energy Partners. AEU’s lead debt investor is GSO Capital Partners, the credit investing division of The Blackstone Group, with additional debt from Magnetar Capital, BlackRock Inc and others.

Energy & Minerals Group disclosed commitments of more than $1.2 billion from 63 investors for Energy & Minerals Group Fund III in a Form D filing dated Dec. 31. It disclosed  $2.25 billion in commitments for Energy & Minerals Fund II in December, 2012, in an amended Form D. It made its first Form D filing for Fund II in June 2011.

A spokesperson for the firm declined to comment.