First Reserve Corporation has closed its latest fund, the First Reserve Energy Infrastructure Fund, at over USD1.2bn. The closing of follows the successful close of its most recent buyout fund, First Reserve Fund XII, in 2009 at approximately USD9 billion.
First Reserve has invested exclusively in the energy and natural resource industries for nearly three decades and has over USD20 billion of assets under management.
The fund’s infrastructure investments will be focused on long lived assets in three energy verticals: contracted midstream, which includes pipelines, storage and LNG facilities; contracted power, which includes renewable generation and conventional generation; and regulated transmission and distribution, including electric and gas utilities. Geographically, the fund will focus on investments in North America and Western Europe.
“The advancement of our infrastructure investment program enables our team to offer broader and more strategic solutions to our energy industrial partners, and at a size and scale that is relevant,” says William Macaulay (pictured), Chairman and Chief Executive Officer of First Reserve.
The fund expects to continue to emphasise strategic joint ventures, a format often used by First Reserve. The first investment in the Fund is a joint venture with SunEdison LLC called SunEdison Reserve formed to own utility scale solar photovoltaic power generation facilities.
Mark Florian, Managing Director and Infrastructure Group Head says: “With a fully dedicated infrastructure investment team, we believe we are well positioned to choose amongst the most attractive deal flow opportunities that originate through First Reserve’s deep energy industry relationships. First Reserve’s in-house market insight developed over three decades and our experience working in the joint-venture format will continue to set us apart and reinforce our position as a value-added strategic investment partner.”
The fund’s Limited Partner base is made up of a diverse group of longstanding and new institutional investors.