Private equity firm Riverstone Holdings is launching Extol Energy, a new energy company based in Austin, Texas, that will invest in conventional power assets alongside Riverstone in North America.
Riverstone did not disclose whether the investment is being made through its latest vehicle, Riverstone Global Energy & Power Fund IV, a fund the firm is in the process of raising with a target of $8 billion.
As of 10 September 2015, Riverstone had raised $4.2 billion for fund VI, according to the most recent SEC filing. The firm also did not disclose the amount of capital it is investing in Extol. Riverstone declined to comment.
The new company is led by the former management team of Topaz Power Management, a company that handled more than 5GW of conventional power facilities representing more than $1 billion of equity invested by Riverstone.
The Topaz Power team also facilitated the merger of Riverstone’s competitive power generation business with those of PPL Corporation, resulting in the launch of Talen Energy in June 2014.
Extol’s management team comprises president and chief executive Charles Cook; senior vice president for finance and corporate development Patrick Worrall; and senior vice president for commercial operations Miguel Garcia.
The new company will serve as Riverstone’s primary operating platform for investments in conventional power assets in North America, according to Extol’s website.
Established in 2000 and based in New York, Riverstone is an investment firm focusing on the energy and power sectors. It has raised $34 billion of equity capital since inception and has committed about $30 billion to over 120 investments in North America, Latin America, Europe, Africa and Asia.