Carlyle/Riverstone in third gas platform

Carlyle/Riverstone’s latest $2.45bn energy fund will provide $200m to Legend Natural Gas III, a company which will acquire and develop onshore natural gas and other properties in south Texas.

The Carlyle Group’s and Riverstone Holdings’ third energy fund, Carlyle/Riverstone Global Energy and Power Fund III, will commit $200 million (€156 million) to the Texas-based energy company Legend Natural Gas III.


Legend will use the funds to acquire and develop onshore energy properties, primarily in the southern Texas natural gas sector. It’s the third Legend venture that Carlyle/Riverstone has invested in since 2001.


Legend Natural Gas I was formed in September 2001 with $100 million of funding commitments from Carlyle/Riverstone’s first two funds. Legend I was bought in August 2004 by Chesapeake Energy in an all-cash transaction for an undisclosed amount, and was Carlyle/Riverstone’s first exit. Legend Natural Gas II is still unrealised. Legend III will retain the same management as the first two iterations, including president and CEO James Winne III and vice president and CFO Michael Becci.


Carlyle/Riverstone previously realised energy investments in Ohio oil and gas exploration company Belden & Blake and Texas-based Mariner Energy. It also completed deals with energy concerns CDM Resource Management and Magellan Midstream Partners.


Investors in the $2.45 billion Carlyle/Riverstone III fund include Abu Dhabi Investment Authority, the University of Maryland, the California Public Employees’ Retirement System, the New York State Common Retirement Fund, the Delaware Public Employees’ Retirement System and the Nestlé USA Pension Trust, according to SEC filings.