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Lime Rock seeks $1.35 bln for fifth resources fund, renewables offering

Lime Rock Management is targeting a combined $1.35 billion for a fifth resources fund and a first-time renewable energy vehicle, according to a person with knowledge of the matter and a Form D fundraising document.

Lime Rock Resources, a division of the private equity firm, set a $750 million goal for its fifth oil and gas properties fund, the source said. If successful, Lime Rock Resources V, which has a $900 million hard cap, will be roughly the same the size as its predecessor, which closed in 2016.

In addition, Lime Rock New Energy, a newly created affiliate, is seeking $600 million for its inaugural fund, the source said, confirming an earlier report by the Wall Street Journal. Earmarked for investments in emission reduction opportunities, the fund marks a significant diversification of the firm’s offerings, which since 1998 have focused on the traditional energy industry.

Lime Rock has a third division, Lime Rock Partners, which invests in exploration and production and oilfield services.

Lime Rock Resources V raised initial commitments last month, the source said, while Lime Rock New Energy I is approaching a first close. Investors in prior funds have included endowments and foundations, family offices, high-net-worth individuals and pension plans.

Lime Rock, which has offices in Houston and Westport, Connecticut, declined to comment on its fundraising activity.

Lime Rock’s resources group, established in 2005, buys, operates and develops oil and gas properties with long producing histories in U.S. basins. Acquisitions run from individual assets to multi-property, multi-basin packages. Target properties typically offer additional drilling opportunities and/or the potential for operational improvements.

Deals done this year include the purchase of an overriding royalty interest on natural gas properties in the Appalachian Basin, sold by Range Resources Corp, and the purchase of oil and natural gas properties in Oklahoma, sold by BP America Production Company.

The new energy group intends to invest primarily in companies that provide products and services for renewable energy, energy efficiency and transportation electrification. It will deploy $30 million to $90 million to North American businesses as well as global businesses engaged in the North American market.

The investment team of Lime Rock Resources is led by Managing Directors and Co-CEOs Charlie Adcock and Eric Mullins and President and COO Tim Miller. Miller was promoted to the role of president in January.

Lime Rock New Energy’s team is led by Managing Directors Mark Lewis, Mark McCall, Anu Mehta, Alexander Mishkin and Gary Sernovitz. Lewis joined late last year from TAE Technologies, where he was president and chief business officer.

Lime Rock in 2018 raised fund commitments totaling $1.4 billion for Lime Rock Partners. Nearly half of the capital was secured by Lime Rock Partners VIII. The rest was collected for a vehicle that acquired the outstanding assets of Fund IV.

Action Item: See Lime Rock Management’s ADV filings here.