Louisiana Teachers’ continues energy push, backs EnCap Fund X

EnCap Investments set a $5 billion target for Fund X, Buyouts reported. The fund will invest in exploration and production companies in the oil and gas sector.

Energy funds remain popular with limited partners despite steep declines in oil and gas prices over the previous six months. Lower valuations on energy assets have created a buyer’s market for private equity firms that are deploying new funds in the sector, several market sources said in recent interviews.

Louisiana Teachers’ $16.7 billion retirement system committed heavily to private equity energy funds last year, allocating up to $365 million through November. The retirement system also co-invested $2 million alongside an unspecified investment managed by The Blackstone Group’s energy team.

The Teachers’ Retirement System of Louisiana had a 10 percent allocation to private equity as of Dec. 31, according to its website. The system has a 13 percent target allocation to the asset class.