EnCap Flatrock raises $2.26bn for third fund

The firm held a first close for EnCap Flatrock Midstream Fund III on $2.26 billion, exceeding its $2.25 billion target.

EnCap Flatrock Midstream, a private equity firm focusing on midstream opportunities in North America, has raised $2.26 billion for its third midstream fund, according to a filing with the Securities and Exchange Commission.

Fundraising, which began at the end of January, already has surpassed the $2.25 billion target that the firm had set for EnCap Flatrock Midstream Fund III, but it still is below the $3 billion hard cap. The firm expects to reach the $3 billion hard cap and hold a final close by the end of April, a source familiar with the matter said.

According to Infrastructure Investor’s Research & Analytics, pension funds that have made commitments to the new fund include: Houston Employees’ Pension System (HMEPS); San Antonio Fire and Police Pension Fund; Teachers’ Retirement System of Louisiana; Public Employees Retirement Association of New Mexico; Oklahoma State Regents for Higher Education; Maine Public Employees Retirement System; and the Texas County and District Retirement System.

The fund will focus on the acquisition and development of midstream energy infrastructure in the US and Canada. In February, EnCap Flatrock deployed $100 million from EnCap Flatrock Midstream Fund II – the predecessor fund, which closed on $1.75 billion in July 2012 –to Tall Oak Midstream, a newly-formed company focusing on emerging resource plays across North America.

Headquartered in San Antonio, EnCap Flatrock was founded in 2008 by EnCap Investments and Flatrock Energy Advisors. It has more than $3 billion in assets under management.