FLAG Capital closes third infra FOF on $200m

Flag Capital Management, a global asset manager headquartered in Stamford, Connecticut, has closed its third infrastructure fund of funds – Flag Energy & Resources Partners III (FERP III) – on $200 million, according to a recent filing with the Securities and Exchange Commission (SEC).

FERP III, which was launched in August 2012, is a global fund of funds but is weighted toward North American investments.

“FERP III seeks to invest with fund managers that have particular asset-type and operational expertise across oil and gas (upstream and midstream), power generation, timber, mining and agriculture sectors,” a company spokesperson told Infrastructure Investor.

The asset manager, which started operating in 1994 primarily to provide smaller investors access to venture capital fund managers, started investing in real assets in 2005, including infrastructure, particularly energy infrastructure and natural resources.

Its previous vehicle, FERP II, was launched in January 2010 with a target of $150 million. The fund closed on $134 million in May 2011.

According to the spokesperson, there was no FERP I. Instead the firm had a $146 million real assets fund that combined natural resources and real estate investment. That fund closed in July 2008.

Aside from its Connecticut headquarters, the firm has offices in Boston and Hong Kong, where it established a presence in 2012 with the acquisition of Squadron Capital Management, a Hong Kong-based asset manager offering institutional investors access to private equity opportunities in the Asia Pacific region. In addition to real assets, FLAG also offers a global platform of investment options across venture capital and private equity.