Firm: EnCap Investments LP
Fund: EnCap Investments Energy Capital Fund VIII
Placement Agent: TBD
The firm will likely target somewhere in the range of $3 billion to $3.5 billion for the fund. EnCap Investments closed its seventh fund at $2.5 billion in 2007, and its sixth at $1.5 billion in 2006. The firm typically commits $100 million to $150 million per investment, a sum that gets drawn down over three to five years, almost like an equity line of credit.
The firm employed Credit Suisse First Boston as placement agent for its third and fourth funds in 1997 and 2001, respectively, but did not hire one for Funds V, VI, and VII because of strong demand. Indeed, those funds took an average 90 to 120 days to close, Miller said.
But executives anticipate a more challenging fundraising this time around, so EnCap is hoping to attract international investors to supplement its U.S. base. Miller said they expect Fund VIII could take as many as nine months to raise. “We see a scenario where we might lose a few LPs, or some might make smaller commitments, and those dollars will have to be replaced, so we might have to go abroad to achieve our target,” he said.
The firm’s 160 limited partners include the
EnCap is also in the market trying to raise $750 million for
EnCap’s sixth and seventh funds have yet to yield notable returns for its investors, although they are still in the early part of their investment periods. Its early funds have fared well, according to UTIMCO data as of May 31, 2009.
—Alexander Haislip contributed reporting.