TCW lists energy FoF on GSTrUE

The debt-focussed private investment firm has raised $194 million from listing an energy fund on Goldman Sachs' private exchange. It is the fourth private equity vehicle to do so since the exchange began trading in May.

TCW Group has raised $194 million (€135 million) for a new energy fund of funds through a listing on Goldman Sachs' private exchange, GSTrUE. The vehicle, TCW Energy Partners, will be invested across a range of TCW private equity funds that focus on energy and infrastructure.

The firm plans to ultimately transition the fund to a public exchange, but first wants to “get some seasoning with the fund and with our investors”, the fund's chief executive, Blair Thomas, told PEO.

TCW said it will also pursue “a liquidity facility” such that the fund's total capitalisation will be around $388m. The fund will function as a permanent capital vehicle; as the funds in its portfolio return capital, TCW will reinvest that capital into future products, said Thomas.

TCW Energy Partners is the fourth vehicle listed on GSTrUE. Apollo Management, Oaktree Capital Management – which was founded by former TCW executive Howard Marks – and Fortress Investment Group have all listed a portion of their management companies on the exchange, which is only open to qualified institutional buyers.

GSTrUE is set to merge with three other private exchanges in the first quarter of 2008: Bear Stearns' Best Markets, OPUS-5, and NASDAQ's PORTAL system. The new exchange, the Portal Alliance, will be run on NASDAQ's existing electronic exchange.

Blair said the consolidation would be a positive development for the new fund.

“It will provide additional liquidity,” he said. “And the big advantage is that it will provide multiple market makers.”