The New Mexico State Investment Council committed up to $75 million to NGP Energy Capital Management’s tenth natural resources fund at its meeting Tuesday, according to spokesman Charles Wollman.
The $14 billion state endowment had previously committed $30 million to NGP Energy Technology Partners II, which raised $348 million in 2009.
NGP, which launched Fund X in February, is targeting $4.75 billion for businesses in the oil and natural gas production, energy midstream and oilfield services industries. The general partner is committing 2.8 percent to the fund with typical carried interest, according to documents obtained from the Oregon Investment Council.
Other limited partners include the OIC, the Minnesota State Board of Investment, the Pennsylvania Public School Employees’ Retirement System and the Public Employees Retirement Association of New Mexico, according to data provider Private Equity Connect. The fund’s most recent US Securities and Exchange Commission filing indicated it had raised at least $568 million as of 2 June.
The firm started the fund after abandoning a vehicle known as Adaptation Partners, which launched in 2010 with a $4 billion target for investments in water resources and services and food and agriculture, two areas affected by major global changes, including population growth, climate change and economic development. The fund failed to generate support from limited partners, one existing LP told Private Equity International. The strategy was eventually incorporated into Fund X, where it will account for 25 percent of the fund’s focus.
NGP’s previous fund, NGP IX, was generating a -0.37 internal rate of return as of 28 February, according to documents from the University of Texas Investment Management Company.
It’s been a strong year for energy-focused private equity firms. Earlier this month, ArcLight Capital Partners and Energy Investors Funds capped their latest fundraisings at $3.3 billion and $1.7 billion, respectively. Denham Capital is targeting $2.5 billion on its latest energy fund and Riverstone Holdings is reportedly coming to market with a $6 billion fund, its first since concluding its relationship with The Carlyle Group.
NGP was founded in 1988. The firm has raised around $9.5 billion through its family of funds with a focus on a variety of investment platforms in the energy and natural resource sectors.