Riverstone/Carlyle fund hits $6bn target(3)

The fourth global power and energy fund raised by the two firms will stay in the market a few more months, with Riverstone having recently expanded its team to help source and execute future energy investments.

The Carlyle Group and Riverstone Holdings have reached the original $6 billion target for their newest energy-focused fund – Riverstone/Carlyle Global Power & Energy IV – and have extended their fundraising for at least another few months.

The two firms’ last joint global power and energy fund raised $3.8 billion in 2006.

Among the investors in the fund are Toronto-based CPP Investment Board, which committed $200 million; the New York State Teachers’ Retirement System, which committed $100 million; and the California Public Employees’ Retirement System, which committed $500 million.

Riverstone last week appointed former Goldman Sachs general partner and ex-US diplomat Peter Coneway as a Houston-based managing director to work on energy investments. Riverstone manages $17 billion across six funds focused on sectors such as oilfield services, power and renewable energy.

It has also partnered with Carlyle on several other funds including the $685 million Carlyle/Riverstone Renewable Energy Infrastructure Fund I in 2006, as well as energy investments such as the $860 million acquisition of Calgary-based Gibson Energy last December.

The robust numbers for the most recent Carlyle/Riverstone fund come as clean energy has become a bigger focus for many LPs, with ATP, one of the largest pension funds in Europe, recently committing $400 million to a vehicle managed by New Jersey-based firm Hudson Clean Energy Partners, while CalPERS has invested $200 million to Khosla Ventures Expansion Fund.