Fundraising - OCTOBER 16, 2014

NGP raises $4.4b for 11th oil and gas fund

by Andrea Waitrovich

NGP Energy Capital Management has raised $4.37 billion for its NGP Natural Resources XI, according to a SEC filing. It has a $5.33 billion target.

The fund is the latest in a series that has 10 prior NGP funds, which have focused on investing in companies focused on oil and gas production, midstream, and oilfield services.

Fund XI aims to provide capital to proven, top-tier management teams to purchase existing oil and gas assets, reduce cost structures, and increase volumes in order to create value. NGP looks to partner with “owner-managers.”

Consistent with prior NGP funds, the firm intends to invest the majority of the fund’s capital in North America, but will be opportunistic on a global basis should quality transactions arise. The fund is expected to make six to 10 investments per year at an investment size of $50 million to $250 million and expects to have 20 to 30 investments in total.

The manager has co-invested $325 million in the fund.  Other investors include the Adams County (Colo.) Retirement Plan, Pennsylvania State University and Pennsylvania Public School Employees’ Retirement System.

Natural Resources X, the fund’s predecessor, closed in June 2012 after raising $3.58 billion.

NGP has been actively investing in the North American upstream energy sector for more than 25 years while completing more than 250 transactions. Within the energy sector, NGP has focused primarily on investing in oil and gas production

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