Scout Energy Fund IV hits $500 mln hard cap, is 80 pct deployed

  • Scout IV is 80 pct deployed
  • Targets upstream oil and gas assets
  • Hit $500 mln hard cap

Scout Energy Partners closed its fourth fund on its $500 million hard cap and has already deployed around 80 percent of the pool, sources told Buyouts.

Fund IV closed in July, sources said. At its current deployment level, Scout expects to come back to market with Fund V later this year, sources said.

It’s unusual for a fund to be nearly fully deployed at the final close of fundraising. But Scout’s deal pipeline is full due to a commodity-price collapse creating more distress in the market and reducing the number of buyers and lenders, one source said.

Scout invests in middle-market upstream, operated oil-and-gas properties, driving returns through operational improvements and scale economies, Scout’s Form ADV said.

Scout Energy was formed in 2009 and launched its first institutional fund in 2011. The firm is owned and controlled by Managing Directors John Baschab, Todd Flott and Jon Piot, the Form ADV said.

The firm raised $200 million for its debut fund, $300 million for Scout II and $360 million for Scout III. Scout completed more than 40 acquisitions with more than $1 billion of value since launching its first fund in 2011.

The Dallas firm earlier this year hired Colin Watson as director of investor relations. Watson joined from BOK Financial, where he was a senior vice president.

Scout also hired Mike Mercer as vice president in operations. Mercer joined from Urban Oil and Gas, a private energy fund in Dallas.

Action Item: Check out Scout’s Form ADV here: