LPs

Riverstone halfway to $8 bln hard cap on Fund VI

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  • Firm raises $4 bln through July 2
  • Fund VI will invest in energy businesses 
  • Riverstone deploys at least $400 mln of Fund VI in 2015

Riverstone launched Fund VI last May with a $7.5 billion target. Limited partners in Riverstone Global Energy and Power VI include the Houston Municipal Employees Pension System, the Ohio Police & Fire Pension Fund and the Teachers’ Retirement System of the State of Illinois.

Riverstone, which specializes in the energy sector, will invest Fund VI in midstream, exploration and production, energy services, power and coal related businesses, according to a May announcement from Riverstone Energy Limited, a publicly traded affiliate of the firm.

The firm has already deployed at least $400 million from Fund VI across a pair of deals this year. In April, the firm used $67 million of Fund VI equity toward its $300 million investment in Meritage Midstream Services III. Earlier that month, Riverstone committed $333 million of Fund VI to an investment in Three Rivers III, an Austin-based oil and gas company.

Riverstone is also in the process of raising its debut credit opportunities fund, Buyouts previously reported. The firm is targeting $1 billion for investments in market opportunities created by market dislocations in the leveraged capital markets for energy companies, according to a press release. Other firms, including Apollo Global Management and GSO Capital Partners, are raising similar vehicles to pursue distressed opportunities created by steep reductions in oil prices.

A Riverstone spokesman declined to comment.

Fund V, Riverstone’s $7.7 billion 2012 vintage fund, netted a 31.8 percent internal rate of return and a 1.5x investment multiple through Sept. 30 2014, according to returns published by the California Public Employees’ Retirement System.

Previous Riverstone Global Energy and Power funds, which were raised alongside The Carlyle Group, netted between 8.6 percent and 53.1 percent through the same date, according to CalPERS data.

Riverstone was founded by Pierre Lapeyre, Jr. and David Leuschen in 2000. The firm has offices in New York, London, Houston and Mexico City.