Quantum Energy prepares final close on Fund VI

  • Quantum to hit $3.25 bln hard cap
  • GP commitment to put Fund VI over hard cap
  • Fund VI fundraising launched last May

Quantum is set to hold a final close on Fund VI this week on its $3.25 billion hard cap, plus a GP commitment, the person said. It’s not clear how much the fund total will reach with the GP commitment. Dow Jones earlier reported Fund VI was approaching a final close on $3.45 billion.

Fund VI launched in May 2014 and quickly reached its $2.5 billion target in October, a source told Buyouts in a previous interview. The firm, led by S. Wil VanLoh Jr, held a first close on $1.17 billion over the summer, two sources told Buyouts at the time.

Quantum’s fifth fund, which closed on $2.5 billion in 2009, produced a 19.75 percent internal rate of return and a 1.35x multiple as of Dec. 31, 2013, according to the Texas County & District Retirement System.

Quantum in March agreed to invest up to $1 billion in a new entity to buy and develop oil and gas assets that would be managed by Linn Energy LLC, according to Reuters.

Energy fundraising has taken off in recent years, before oil prices dropped. Energy-focused funds collected about $42.4 billion in 2014 and $45.3 billion in 2013, its peak year, according to Preqin.

These totals are way up from prior years: Energy firms raised $29.7 billion in 2012 and $18.9 billion in 2011, Preqin said.