Firm: Kohlberg Kravis Roberts & Co.
Fund: KKR Energy Income & Growth Fund
Target: $1.5 billion
Kohlberg Kravis Roberts & Co. is seeking $1.5 billion for an energy fund that will invest in oil and gas development, sister news service Reuters reported, citing Bloomberg News. KKR plans to use the KKR Energy Income & Growth Fund mostly for drilling partnerships with a goal of generating steady income and distributions for investors.
The buyout firm did not immediately respond to a request for comment.
KKR is offering a management-fee discount to clients who commit money in the first round of fundraising, Bloomberg reported, citing two people with knowledge of the matter. The fund will also invest in minerals and royalties, as well as mezzanine debt.
While marketing the fund, KKR will be able to give investors a preview of some investments. The firm will roll three deals into the fund comprising drilling partnerships with Comstock Resources Inc., Raptor Petroleum LLC and Cinco Energy Services, the news agency said.
KKR agreed in July to pay up to around $200 million to take a one-third stake in oil and gas company Comstock Resources’ position in the Eagle Ford shale in south Texas. A consortium led by the private equity firm clinched a deal to buy oil and gas group Samson Investment Co. for $7.2 billion in November 2011.
The private equity firm is offering an annual management fee of 0.75 percent to investors joining the first close, expected sometime in May, compared with 1.5 percent for later clients, Bloomberg reported.
Ashutosh Pandey is a correspondent for Reuters in Bangalore.