Goldman Sachs Asset Management's Petershill programme has acquired a 12 percent stake in energy buyout firm Riverstone Holdings for up to $500 million, a Goldman Sachs spokesman confirmed to Infrastructure Investor.
The deal gives Goldman Sachs access to one of the world’s largest energy investment firms and is the Wall Street bank’s latest push into private equity. The deal valued New York-based Riverstone at $4 billion, according to The Wall Street Journal.
Goldman invested from its Petershill fund, which launched in 2007 and is targeting $2 billion, to purchase minority stakes in private equity firms looking for liquidity. Petershill capital typically supports fund managers in employee retention, business development, and buying out legacy stakeholders.
The Petershill programme bought minority stakes in midsize private equity firm Littlejohn & Co. last August and another energy investor, ArcLight Capital Partners, in January.
Riverstone launched in 2000 and has since raised $36 billion of capital, focusing on buyouts and growth investments in energy and power firms.
The firm took a hit when oil prices plummeted in 2014, but has been rebounding thanks to stabilised oil prices and a diversified portfolio that includes more natural gas and transmission assets.
Its largest deals in the last year include acquiring a 50 percent equity stake in a pipeline that will transport ethane-propane mixtures from Ohio to Canada and a 65 percent stake in power generation company Talen Energy for $1.2 billion.