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Carlyle/Riverstone III amasses $2.45bn warchest

Carlyle/Riverstone, less than two years after closing on $1.1bn in commitments for its second fund, has amassed $2.45bn for its follow up effort.

Carlyle/Riverstone, the energy partnership forged between the Carlyle Group and the David Leuschen-headed Riverstone Holdings, has nearly hit the $2.5 billion (€2.1 billion) ceiling set for its third fund, Carlyle/Riverstone Global Energy and Power Fund III, LP.

According to SEC filings, investors in the new fund include Abu Dhabi Investment Authority, The University of Maryland, The California Public Employees’ Retirement System, New York State Common Retirement Fund, Delaware Public Employees’ Retirement System and The Nestle USA Pension Trust.

According to market sources, Carlyle/Riverstone has not held a final closing of the fund.

The new fund comes roughly a year and a half following the close of its predecessor vehicle, the $1.1 billion Fund II. The short window between funds is misleading, considering Carlyle/Riverstone had already committed nearly half of its second fund by the time it held its final close. Both vehicles represent a significant jump over the debut Carlyle/Riverstone vehicle, which closed at $222 million in early 2001.

The SEC filings indicated that the fund carried a minimum investment of $10 million from limited partners, although the GP reserved the right to waive that under certain circumstances.

Riverstone Holdings was formed in 2000 to pursue opportunities in the energy and power space. The firm teamed up with Carlyle to launch the fund, and the partnership has grown quickly with each successive vehicle raised.

The group has already notched realisations from investments in Ohio-based oil and gas exploration company Belden & Blake, natural gas development outfit Legend Natural Gas, and Mariner Energy, a Texas-based oil and gas concern.

Carlyle declined to comment on the fundraising. The firm submitted four separate SEC filings that revealed $2.45 billion in limited partner commitments, which is close to the target expressed in the filings of $2.5 billion.