March 27 Private equity firm KKR & Co LP
is seeking $1.5 billion for an energy fund that will invest in
oil and gas development, Bloomberg reported, citing two people
with knowledge of the matter.
KKR plans to use the KKR Energy Income & Growth fund mostly
for drilling partnerships with a goal of generating steady
income and distributions for investors. ()
The buyout firm did not immediately respond to a request for
KKR is offering a management-fee discount to clients who
commit money in the first round of fundraising, Bloomberg
The fund will also invest in minerals and royalties, as well
as mezzanine debt.
While marketing the fund, KKR will be able to give investors
a preview of some investments. The firm will roll three deals
into the fund comprising drilling partnerships with Comstock
Resources Inc, Raptor Petroleum LLC and Cinco Energy
Services, the news agency said.
KKR agreed in July to pay up to around $200 million to take
a one-third stake in oil and gas company Comstock Resources'
position in the Eagle Ford shale in south Texas.
A consortium led by the private equity firm clinched a deal
to buy oil and gas group Samson Investment Co for $7.2 billion
in November 2011. ()
The private equity firm is offering an annual management fee
of 0.75 percent to investors joining the first close, expected
sometime in May, compared with 1.5 percent for later clients,