Riverstone picks up $30m from New Mexico PERA

The New Mexico Public Employees Retirement Association has re-upped into Riverstone’s first investment vehicle since ending its relationship with The Carlyle Group.

The New Mexico Public Employees Retirement Association committed $30 million to Riverstone Holdings’ fifth global energy and power fund, targeting $6 billion, at its investment committee meeting recently. New Mexico has a 3.8 percent allocation to private equity as of 31 December, according to retirement system documents. 

New Mexico had previously invested in Riverstone’s fourth fund, PERA’s deputy chief investment officer Julian Baca said. Fund IV, a $4 billion 2007 vintage, was generating a 24.5 percent internal rate of return and 1.36x return multiple as of 31 March, 2011, according to Teachers’ Retirement System of the City of New York documents. 

Riverstone V is the firm’s first fund since concluding its relationship with The Carlyle Group last year. The fund, which launched in November, has generated strong interest from investors, sources said, citing the firm’s “constant” level of deal flow. 

The firm typically focuses on investments in the energy and power sectors and has also raised a fund targeting the alternative energy industry.  

Riverstone has been particularly active in the last year. In August, portfolio company Dynamic Offshore Resources filed a $400 million initial public offering with the SEC. The company postponed its IPO last month citing unfavorable market conditions. Riverstone sold the company to SandRidge Energy for $1.28 billion shortly after the postponent, generating a 4x return on their original investment, according to a market source. 

The firm has also been active as a buyer, acquiring a portfolio of gas fired generation facilities from the Morris Energy Group in October.

Riverstone was founded in 2000 by David Leuschen and Pierrre Lapeyre and has around $17 billion in assets under management.