Riverstone raises $7.7 billion for energy fund
Riverstone Holdings LLC has secured $7.7 billion from investors for its latest fund, the first the energy-focused private equity firm has raised since ending a collaboration with peer Carlyle Group LP.
_0">Riverstone said the fund, called Riverstone Global Energy and Power Fund V, will focus on building energy and power businesses around the world. The firm had originally targeted raising $6 billion for the fund, which has already invested $2.3 billion in 19 companies.
New York-based Riverstone and Washington-based Carlyle launched six funds together beginning in 2000 that were focused on buyouts in the energy and power sectors, accumulating about $15 billion in assets under management. But the two private equity firms decided to go it alone in 2011.
Riverstone, which was founded in 2000, has committed about $22.3 billion to 99 investments in the midstream, exploration and production, oilfield services, power and renewable sectors of the energy industry.
Its founder, David Leuschen, was implicated in a probe of kickbacks to middlemen related to New York's state pension fund and had to pay $20 million in restitution to resolve the situation in 2009.
The firm recently hired former Anadarko Petroleum Co Chief Executive James Hackett as a partner and co-head of its Houston office.
Following its decision to part ways with Riverstone, Carlyle last year bought nearly half of energy-focused peer NGP Energy Capital Management LLC in a bid to capitalize on a revolution in U.S. energy markets.
