First Reserve raises $2.5bn for second energy infra fund 2

The closing, $500m above the vehicle’s original target, takes the capital earmarked by the firm for energy infrastructure deals to more than $4bn.

First Reserve, the energy-focused private equity firm, has reached a final close on its second energy infrastructure fund on its hard-cap of $2.5 billion.

The vehicle, which had an initial target of $2 billion, is about twice the size of its predecessor. First Reserve’s Energy Infrastructure Fund I closed in May 2011 on $1.23 billion.

The fund, which the firm said was oversubscribed, was formally launched eight months ago, according to a statement. However, data from Infrastructure Investor Research & Analytics states that the vehicle was already being raised in April 2013. The firm was unable to provide further clarification on these matters before press time.

The vehicle’s investor base comprises both existing LPs and new ones from around the globe, the firm said. Known investors in the fund include Maine Public Employees Retirement System (MainePERS), New York City Retirement System (NYCRS), New Mexico State Investment Council (SIC) and Virginia Retirement System (VRS).

Investors in the previous fund included MainePERS, California State Teachers' Retirement System (CalSTRS), Teacher Retirement System of Texas and West Midlands Pension Fund, according to Infrastructure Investor Research & Analytics. 

“First Reserve initially launched an energy infrastructure investment program to enable our team to offer broader and more strategic solutions to both our wide network of corporate partners and our investors,” commented William Macaulay, chairman and chief executive of First Reserve, in the statement.

“We are thrilled at how the strategy has played out, meeting our expectations of delivering long-term contracted revenues.”

In line with the strategy followed by its predecessor, Fund II will target long-term investments in sectors including contracted power (both renewable and conventional), regulated transmission and distribution, and contracted energy assets such as floating storage facilities.