Quantum Energy Fund VII nears $4 bln, heads for hard cap

Quantum Energy Partners at the end of this month is set to hit about $4 billion for its seventh fund and will shoot for its $4.5 billion hard cap, according to a person with knowledge of the firm.

Fund VII, which launched earlier this year, has been targeting $3.5 billion. Park Hill Group is placement agent on the fundraising.

No one from Quantum returned a call for comment.

Quantum closed Fund VI on $4.45 billion in mid-2015. That fund was generating an 89 percent internal rate of return through Sept. 30, 2016, according to Nebraska Investment Council documents. Fund V, a $2.5 billion 2009 vintage pool, was netting a 17 percent IRR as of that date.

Quantum is led by S. Wil VanLoh Jr, James Baird, Dheeraj Verma, Garry Tanner and Bill Montgomery. The Houston firm’s primary focus is in the oil-and-gas, midstream, power-generation and oilfield-services sectors.

Quantum offered LPs early-closer discounts on Fund VII. LPs in the first close were offered a 1.65 percent management fee during the investment period and 1.5 percent after, Buyouts reported. Other LPs pay a 1.75 percent management fee during the investment period and 1.5 percent after, Buyouts said.

In May, Quantum formed Denver-based Middle Fork Energy Partners to acquire, develop and operate properties in the Rocky Mountain region. Quantum and Middle Fork management collectively made initial commitments of more than $200 million to Middle Fork Energy Partners.

Action Item: Check out Quantum’s Form ADV here: http://bit.ly/2uq0dk2

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