Riverstone raises $7.7 billion for energy fund

NEW YORK, June 19 Wed Jun 19, 2013 11:35am EDT

NEW YORK, June 19 (Reuters) - Riverstone Holdings LLC has secured $7.7 billion from investors for its latest fund, the first the energy-focused private equity firm has raised since ending a collaboration with peer Carlyle Group LP.

Riverstone said the fund, called Riverstone Global Energy and Power Fund V, will focus on building energy and power businesses around the world. The firm had originally targeted raising $6 billion for the fund, which has already invested $2.3 billion in 19 companies.

New York-based Riverstone and Washington-based Carlyle launched six funds together beginning in 2000 that were focused on buyouts in the energy and power sectors, accumulating about $15 billion in assets under management. But the two private equity firms decided to go it alone in 2011.

Riverstone, which was founded in 2000, has committed about $22.3 billion to 99 investments in the midstream, exploration and production, oilfield services, power and renewable sectors of the energy industry.

Its founder, David Leuschen, was implicated in a probe of kickbacks to middlemen related to New York's state pension fund and had to pay $20 million in restitution to resolve the situation in 2009.

The firm recently hired former Anadarko Petroleum Co Chief Executive James Hackett as a partner and co-head of its Houston office.

Following its decision to part ways with Riverstone, Carlyle last year bought nearly half of energy-focused peer NGP Energy Capital Management LLC in a bid to capitalize on a revolution in U.S. energy markets.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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