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EnCap Flatrock Midstream closes USD3bn fund

Private equity fund EnCap Flatrock Midstream (EFM) has held the final closing of EnCap Flatrock Midstream Fund III.

Substantially oversubscribed, the fund exceeded its USD2.25 billion target and reached its USD3 billion hard cap within four months.
Fund III received strong support from existing limited partners of its predecessor funds and also attracted many new investors, including well-known corporate and public pension plans, family offices, insurance companies and university endowments and foundations.
EFM has a strong track record of investing value-added growth capital in the midstream segment of the North American energy industry. EFM III will follow the same strategy as its predecessors, EnCap Flatrock Midstream Fund I and EnCap Flatrock Midstream Fund II, by investing in independent, start-up midstream companies led by experienced management teams.
EFM II is a 2012 vintage fund that closed at its hard cap of USD1.75 billion and has made equity commitments to 10 portfolio companies. Since the firm’s first fund closed in 2010, EnCap Flatrock has made equity commitments to a total of 16 portfolio companies and has had four realisation events totalling nearly USD4 billion.
Bill Waldrip, EnCap Flatrock’s founder and one of its three managing partners, says: "We are extremely pleased with the continued support we have received from our limited partners and excited to welcome many new investors to EFM. With EFM III, we plan to continue to apply our proven investment process as we seek to generate attractive returns for our investors. We have a results-driven value creation philosophy that is guided by a disciplined approach to risk management that has served our teams and investors very well.
"As we deploy Fund III, we will continue to partner with the best midstream management teams in North America to help them grow their companies into valuable market leaders. We’re enthusiastic about our industry’s future and pleased to have a new pool of capital to put to work. We are actively looking for new management teams that are seeking value-added capital and are aligned with our approach. It’s a simple approach. We come to work every day thinking about what we can do to help the teams we work with reach their goals.”

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