Mid-market energy investor Quintana Capital Group has held a first close in excess of $250 million for its second fund targeting $650 million, a person familiar with the firm told InfrastructureInvestor.
Energy investments: holding strong
Quintana started marketing the fund in the beginning of August and is holding investor-specific closings. Final close is anticipated on or before August of next year, the person said.
The fund will be a continuation of the strategy of the firm's first fund, Quintana Energy Partners (QEP), which closed on $650 million in capital commitments in 2006 and is fully invested. QEP targeted investments between $10 million and $125 million in upstream and midstream oil and gas, coal, coal services and opportunistic investments in other sectors. The first fund is invested 75 percent in North America and 25 percent in the rest of the world, including South American countries and China.
Quintana’s second fund will have a 15 percent allocation to China, where the firm recently opened an office to spearhead investing in that country’s coal sector. The office is located in Beijing and has two employees. It is headed by Ben Danielson, vice president at Quintana.
Should Quintana go beyond its 15 percent allocation to China before the fund is fully invested, its LPs have agreed to let it raise a China-specific fund, the person said.
Based in Houston, Quintana as an investment partnership was initiated in December 2005, but affiliates of its founding partner’s family, the Robertsons, have been active in the energy industry in Texas for four generations, commencing with the founding of Quintana Petroleum Corporation in the 1930s.
The Robertson family was a cornerstone investor in QEP. Public pension systems, university and charitable endowments, foundations, corporations, as well as individuals and family offices are also among its investors.
The firm targets internal rates of return of 25 percent to 30 percent and exit multiples between 2.5 times to 4 times or better.