New energy fund-of-funds up to $140m

FLAG Capital Management is raising an energy infrastructure vehicle.

Funds-of-funds operator FLAG Capital Management has raised $140 million for an energy infrastructure offering, according to a US regulatory filing.

FLAG, which has a 'real assets’ business, noted FLAG Energy & Resources Partners III launched a year ago. The vehicle has a minimum $250,000 investment, the filing showed.

FLAG, a $7 billion asset manager, is marketing Energy & Resources Partners III with a real estate fund-of-funds that has raised $21.3 million, Infrastructure Investor confirmed. 

Infrastructure Investor was directed to FLAG partner Louis Sciarretta, chief operating officer (COO) in Stamford, Connecticut, who did not respond to a request for comment. The target size for Energy & Resources Partners III could not be ascertained.

In the institutional market, a fund-of-funds like FLAG is often considered ideal for investors that lack the resources needed to conduct manager due diligence. Funds-of-funds also offer diversification, letting investors allocate capital to multiple managers.

Financial services provider UBS launched an infrastructure fund-of-funds, as did Macquarie Group and private equity firm Pantheon Ventures.

In 2011, Royal Bank of Canada folded its nascent funds-of-funds business.