Riverstone Gets $7.7 Billion for First Post-Carlyle Fund

Riverstone Holdings LLC raised $7.7 billion for a new private-equity energy fund, its first since ending a joint venture with Carlyle Group LP.

Riverstone Global Energy & Power Fund V LP, which the New York-based firm began marketing to investors in the second half of 2011, surpassed its $6 billion target, according to a statement today. Riverstone last year increased the amount it could gather from investors to $7.5 billion from $6.5 billion, two people familiar with the matter said in November. The final tally includes the firm’s own commitment to the fund.

Private-equity natural resources funds raised $9.7 billion in the first quarter, after gathering $22.5 billion in 2012, according to London-based research firm Preqin. At the end of the first quarter, 30 funds were seeking $26.8 billion, including $5 billion by First Reserve Corp. and $1.5 billion for KKR & Co.

The new Riverstone fund has already begun investing, putting $2.3 billion into 19 companies, the firm said in the statement. Riverstone makes buyout and growth capital investments in the exploration and production, midstream, oilfield services, power and renewable segments of the energy industry.

Riverstone and Carlyle entered into a joint venture in 2000 that allowed either firm to end partnership at the start of a fundraising cycle. Riverstone took the option when it began marketing the fifth fund.

To contact the reporter on this story: Sabrina Willmer in New York at swillmer2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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