First Reserve, shipping vet launch $300m venture

First Reserve has committed $300 million to a joint venture with former OMI chief executive Craig Stevenson, formed to pursue energy-related shipping investments.

Energy-focussed firm First Reserve has formed Diamond S Holdings with shipping industry executive Craig Stevenson to invest in energy-related shipping assets. The US buyout firm will commit $300 million (€212 million) to Diamond S from its most recent private equity fund, First Reserve Fund XI, which closed on $7.8 billion in September 2006 and is the largest energy-focussed global fund ever raised.

Craig Stevenson

Stevenson was most recently chairman, president and chief executive of global tanker company OMI. He previously worked at Sabine Towing & Transport and Seabulk and Hvide.

Diamond S Holdings will be based in Greenwich, Connecticut and target investments in all energy-related shipping categories.

Though First Reserve, headquartered in Houston, Texas, primarily targets investments in energy manufacturing and services, infrastructure and reserves, the firm has worked in the shipping sector before. In 2005 it founded Quintana Maritime, a dry-bulk cargo marine transportation services company, out of assets acquired from Purcell Energy. First Reserve exited its investment in Quintana through a initial public offering this May that reportedly earned the private equity firm around $11 million.