First Reserve has closed its second energy infrastructure fund, First Reserve Energy Infrastructure Fund II, LP. The new fund was launched just eight months ago and was oversubscribed beyond its initial target of $2 billion and closed at its $2.5 billion hard cap. First Reserve now has over $4 billion dedicated to investing in energy infrastructure opportunities.
“First Reserve initially launched an energy infrastructure investment program to enable our team to offer broader and more strategic solutions to both our wide network of corporate partners and our investors. We are thrilled at how the strategy has played out, meeting our expectations of delivering long-term contracted revenues,” said William Macaulay, Chairman and Chief Executive Officer of First Reserve. “The success of this most recent fundraise is a testament to our investors’ belief in our investment model and the strong execution of our infrastructure investment team.”
Fund 2 will continue to focus on energy infrastructure investments including (1) contracted midstream, such as pipelines, storage and LNG facilities; (2) contracted power, which includes both renewable and conventional generations; (3) regulated transmission and distribution; and (4) contracted energy assets including floating storage facilities and other essential large-scale energy infrastructure assets. The new fund, like the first, will continue to emphasize strategic joint ventures. To date, First Reserve Energy Infrastructure Fund I, LP has formed partnerships on nearly all its portfolio investments.
“With a fully dedicated infrastructure investment team that has deepened substantially since the first fund, we believe we remain well-positioned to continue generating attractive, proprietary opportunities,” said Mark Florian, Managing Director and Head of Infrastructure. “By drawing on the vast base of experience in both the infrastructure team and the larger First Reserve platform, we feel we have distinguished ourselves as a value-add strategic partner. We are both honored and excited to be able to continue prosecuting these kinds of opportunities on behalf of our limited partners in both funds.”
First Reserve is a private equity firm with a focus on the energy industry. First Reserve has completed more than 475 transactions (including platform investments and add-on acquisitions) on six continents. Its portfolio companies operate in approximately 50 countries and span the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services and infrastructure. The firm was founded in 1983 and has offices in Houston, TX; Greenwich, CT; London, UK and Hong Kong (www.firstreserve.com).
2014 PEPD • Private Equity’s Leading News Magazine • 6-16-14