EnCap Investments has successfully closed a continuation vehicle transaction for PennEnergy Resources, a Pittsburgh-based, independent natural-gas company focused on the development of the Marcellus Shale play, with more than $2 billion of capital commitments. Investor demand exceeded the target capital raise, according to EnCap.
This represents the largest capital raise for a continuation vehicle formed to date in the upstream energy sector.
This transaction allows PennEnergy to continue the development of the company’s decades of high-quality inventory, capitalizing on a constructive natural-gas backdrop and providing growth capital for future bolt-on opportunities.
The vehicle, managed by EnCap, is anchored by funds affiliated with Andros Capital Partners and the Vintage Strategies at Goldman Sachs Alternatives. The continuation vehicle also includes an equity commitment from EnCap Energy Capital Fund XII, the EnCap general partner, and PennEnergy Managemen
