Post Oak Energy closes second fund on $500m

The energy-focused PE firm closed its second fund at its hard cap of $500 million; its existing funds, increased by $100m, will co-invest alongside the new fund.

After three months of fundraising, Houston-based Post Oak Energy Capital has reached the target for its second fund, Post Oak Energy Partners II, which closed at its hard cap of $500 million, the private equity firm said in a statement.

Post Oak’s existing funds were increased by $100 million and will co-invest along with the new fund, according to Tuesday’s statement.

The new fund will pursue the same strategy as the firm’s first fund, Post Oak Energy Partners, with investments in North American oil and gas companies, oilfield services, and related infrastructure. It will have an investment period of five years, a spokesperson for the firm told Infrastructure Investor.

Post Oak’s debut fund met its $200 million target in November 2011 with a single LP contribution, that of the University of Texas Investment Management Company (UTIMCO).

“We are pleased that our strategy and team have the support of some of the most experienced private energy investors in the world,” Post Oak managing director Frost Cochran said. The company, however, did not disclose the identity of the investors.

Established in 2006, Post Oak is a private equity firm focusing on investments primarily in the upstream sector of the North American oil and gas industry, and to a lesser extent to oilfield services and related infrastructure.