EnCap Investments, a Texas-based oil and gas private equity firm, and its partner Flatrock Energy Advisors have closed EnCap Energy Infrastructure Fund with total capital commitments of USD791.6m.
The fund provides growth capital to proven management teams focused on the midstream sector of the oil and gas industry in North America.
Since its inception in 1988, EnCap has managed over USD7bn of capital commitments, providing growth capital to 169 companies.
In establishing the midstream fund, EnCap joined forces with Flatrock, a group of midstream experts who left their advisory practice to become the investment team of the fund. In association with this change of responsibilities, Flatrock will now be known as EnCap Flatrock Midstream.
David B. Miller (pictured), Gary R. Petersen, D. Martin Phillips and Robert L. Zorich, the four managing partners of EnCap, said: "We raised the midstream fund in an incredibly challenging fundraising environment, and we are grateful for the strong support we received from our existing investors, as well as a number of new institutional partners. Although the fundraise was a long and difficult process, we did, in fact, exceed our original target capitalisation of USD750m, which is a real achievement in this market."
Dennis F. Jaggi, William R. Lemmons, Jr. and William D. Waldrip, the three senior partners of EnCap Flatrock Midstream, said: "We believe that the successful fundraise was due in large part to EnCap’s reputation and track record of success across multiple industry cycles, as well as the deep midstream expertise of our team. We’re very excited about the compelling investment opportunities we see in the midstream space, and we look forward to continuing EnCap’s tradition of generating attractive returns for its investors."
Since January 2009, the midstream fund has committed USD215m of its total fund capitalisation to five portfolio companies.
