EIG, Triloma launch energy debt fund

The Triloma EIG Global Energy Fund will allow individuals to invest alongside institutional investors in privately-originated energy company and project debt.

EIG Global Energy Partners, a private equity firm focusing on energy and energy infrastructure, has teamed up with private investment management firm Triloma Financial Group to launch Triloma EIG Global Energy Fund, an unlisted investment company that will provide individuals access to global energy debt investments, the two companies said in a joint statement on Monday.

The fund will be a closed-ended debt fund comprising a master fund and a number of feeder funds. “The plan is to raise $500 million a year with a new offering launched on a yearly basis,” Triloma Securities’ chief executive Larry Goff told Infrastructure Investor.

Fundraising could last three to five years but no cap is set at this time, according to Goff. “We will just continue doing so as long as investing in energy makes sense,” he said.

The fund, which will be managed by Triloma Energy Advisors and EIG Credit Management, will invest across all segments of the energy sector – upstream, midstream, downstream and renewables – in both developed and emerging markets.

“Triloma EIG Global Energy Fund will be built through the broker-dealer channel and will accept investments beginning from $5,000,” Goff said, allowing individuals to make investments alongside institutional investors in many instances.

“Current market volatility only serves to increase the opportunity set as generalists exit the space and companies find themselves with funding gaps caused by lower commodity prices and commercial banks pulling back due to regulatory and market pressure,” EIG chief executive Blair Thomas said. “Our 33 years of experience in this space gives us confidence that now is an attractive time to create the Fund to take advantage of current market dynamics.”

Established in 1982, EIG specialises in private investments in energy and energy-related infrastructure on a global basis. Its clients include pension plans, insurance companies, endowments, foundations and sovereign wealth funds. As of December 31, 2014, EIG had $14.2 billion in assets under management. Over its 33-year course, the firm has invested over $18.5 billion in the sector through more than 300 projects or companies in 35 countries.

In addition to its Washington DC headquarters, the firm also has offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul.

Based in Winter Park, Florida, Triloma manages and sponsors private and publicly-offered investment programmes focused on private equity, real estate and energy investments. On its website, the firm claims that its experience and relationships with the broker-dealer community allows it to “bring the individual investor unique investment opportunities that typically have been available only to institutional investors”,