The $28.3 billion Indiana Public Retirement System has committed $67.5 million to EnCap Flatrock Midstream IV, according to board meeting documents.
The fund, managed by EnCap Investments, will have a target capitalization of $3 billion to make privately negotiated equity investments in the midstream sector of the oil and gas industry, according to the documents. In utilizing its line of equity financing strategy, the fund will primarily focus on providing growth capital, typically making equity commitments of $200 million to $300 million per investment, to experienced midstream management teams in North America.
The fund has previously received commitments from the Teacher Retirement System of Texas, the State Board of Administration of Florida and the New Mexico State Investment Council.
In 2008, EnCap Investments and Flatrock Energy Advisors joined together in a long-term partnership to create EnCap Flatrock Midstream, a series of venture capital funds to invest in the midstream sector of the North American energy space. More specifically, the fund series pursues attractive investment opportunities in natural gas gathering, treating, compression, processing and storage operations, crude oil gathering and transportation, and produced water handling and disposal, among other investments.
The first of these funds, Encap Flatrock Midstream Fund I, closed in April 2010 with institutional-investor commitments totaling $791.6 million. Fund II closed in July 2012 with $1.75 billion of limited-partner capital commitments. Fund III closed in May 2014 with $3 billion of limited-partner capital commitments.
