PE fund briefs, week of Oct. 19, 2009

Catterton to raise top-off fund

Catterton Partners is raising additional capital for its sixth fund, a reflection of the difficult decisions facing buyout firms seeking capital in a dismal environment.

The Greenwich, Conn.-based firm, which last year was expected to come to market with a seventh fund, is now seeking to “top off” its sixth fund with an additional $200 million, according to a regulatory filing.

The capital raised for Catterton Partners VI-B will not be used to support existing investments from the sixth fund; rather, the firm will make new investments alongside the fund’s remaining capital, according to a person familiar with the situation. Catterton had invested almost 60% of fund VI as of August 2008.

Catterton Partners’ seventh fund will be raised “in the future,” a person familiar with the situation said. PE Week previously reported that the firm was preparing to launch a fund-raising campaign for its seventh fund with an expected target of between $1.25 billion to $1.5 billion.

Raising “top-off” capital for an existing fund has become more popular in the past year with the decline in the fund-raising market. A number of firms have successfully raised top-off funds with the aim to invest the capital in new investments. Village Ventures has raised $27 million in new commitments from existing limited partners, which will be added to a $105 million second fund that closed in 2006. KPS Capital topped off its $1.2 billion third fund with an additional $800 million. Mohr Davidow Ventures and Graphite Capital are both in the process of raising annex funds. —Erin Griffith

Quantum Energy wraps up fund near target

Quantum Energy Capital held the final closing for Quantum Energy Partners V in late September at $2.5 billion, within shouting distance of its $2.75 billion target.

The Houston-based shop launched its fund-raising efforts in spring 2008 and held a first close of $2 billion in July last year. The firm raised nearly $1.2 billion for its fourth fund, which closed in 2006.

Limited partners in the new fund include the Australia Post Superannuation Scheme; Canada Pension Plan Investment Board (which committed $200 million); Maryland State Retirement and Pension System; Massachusetts Pension Reserve Investment Trust ($100 million); Nebraska Investment Council ($20 million); and the New Mexico Public Employees Retirement Association ($35 million).

Quantum Energy, founded in 1998, invests in companies involved in exploration and production in the oil and gas sectors, with a secondary emphasis on the midstream, oil-field service, coal, power and alternative energy sectors. Typical investments range in size from $100 million to $400 million. —Nancy Gordon

GI Partners raises $1.9B

GI Partners has closed its third fund with $1.9 billion in capital commitments. Limited partners include Florida Retirement System Trust Fund, Teachers’ Retirement System of Illinois, Capital Dynamics and Partners Group.

First Reserve adopts best practices

First Reserve Corp., an energy-focused buyout firm based in Greenwich, Conn., has adopted the United Nations’ Principles for Responsible Investing. The principles consist of “a set of global investment best-practices that incorporate environmental, social and governance criteria into investment decision making.”