Investors - NOVEMBER 19, 2014

Louisiana Teachers commits to energy fund

by Reg Clodfelter

The $17 billion Teachers’ Retirement System of Louisiana has committed $50 million to NGP Energy Capital’s Natural Resources XI and has also committed a $2 million follow-on investment to an infrastructure co-investment with The Blackstone Group, says Maurice J. Coleman, director of private markets with TRSL.

NGP’s Natural Resources XI continues the fund series’ strategy of investing in oil and gas production, midstream, and oilfield services companies. It is not expected to focus on exploration or land flipping. The fund is seeking $4.5 billion to make six to 10 investments annually at an investment size of $50 million to $250 million. The fund will generally invest in North America, though it will be opportunistic on a global basis.

The commitment is TRSL’s first commitment to the NGP fund series, but this is not the retirement system’s first investment to energy. TRSL it has committed a total of $175 million to Blackstone’s energy fund series, with $75 million going to Blackstone Energy Partners in 2011 and $100 million going to Blackstone Energy Partners II in September 2014, according to IREI’s FundTracker Database. The commitment will be housed in TRSL’s commodities bucket, which has a 2 percent target allocation and a 1 percent actual allocation at this time.

The pension system also made a $2 million follow-on investment to its infrastructure co-investment with Blackstone. The original co-investment with Blackstone was made in July 2012 and targets energy transportation with a greater focus on domestic investments. TRSL has a 1 percent target allocation to infrastructure and a 2 percent actual allocation at this time, though both commodities and infrastructure have an allocation range of up to 5 percent.

To read more information on funds in the market, click here for the recent third quarter FundTracker report

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