New energy fund nabs $1.2B

TCW Energy Partners, run by the TCW Energy & Infrastructure Group, has raised $1.2 billion so far for its latest fund, TCW Energy Fund XV, which has a $2.5 billion target and $3.5 billion hard cap, according to a source familiar with the situation. The firm launched the fund early in 2010.

The Louisiana State Employees’ Retirement System recently committed $40 million, and the Minnesota State Board of Investment committed $150 million to the fund.

The firm makes global oil, gas and electric private placement debt and equity investments, including mezzanine loans, equity investments, production payments and royalty interests, and focuses on engineering and development risk, not geological and exploration risk. The group’s typical investment is in the $100 million to $200 million range.

Its predecessor vehicle closed in 2008 with $2.6 billion, which the firm invested in North America, Western Europe and Australia. About a quarter of the capital raised for Fund XIV came from non-U.S. institutions in 11 countries; TCW’s employees provided $68 million. The Alaska Retirement Management Board committed $100 million, and the Missouri Local Government Employees Retirement System pledged $30 million to Fund XIV.

R. Blair Thomas is the CEO of TCW’s energy business, which has almost $11 billion of capital invested and more than 250 portfolio investments in 33 countries. The TCW Energy & Infrastructure Group has 38 investment professionals in Houston, New York, Washington D.C., London and Sydney. —Nancy Gordon