Virginia commits $150m to First Reserve

The $41.8bn pension will invest in First Reserve XII, which is targeting $12bn and has already collected at least $8bn.

The Virginia Retirement System has made $150 million in fresh commitments to First Reserve XII.

First Reserve is targeting $12 billion for its 12th energy fund and has already collected at least $8 billion. The firm started fundraising last year. First Reserve’s fundraising for its twelfth fund has already eclipsed its 11th fund, which closed on nearly $8 billion in 2006 and is the largest energy fund raised to date. Prior to that, the firm’s 10th fund closed on $2.4 billion in 2004.

First Reserve has already made a $350 million investment in Reliant Energy last October from the 12th Fund, according to SEC filings. The acquisition of convertible preferred stock was part of a $1 billion financing package that also included $650 million term loan from GS Loan Partners.

The Virginia Retirement System also committed $150 million to Hellman & Friedman Capital Partners VII, which is targeting $10 billion and has raised $6 billion.

As of 31 December, 2008, the Virginia Retirement System had $4.3 billion, or 10.4 percent of its capital, allocated to private equity. The pension increased its allocations to private equity and real estate to 10 percent in 2007.