NGP Energy Capital Management, the veteran energy firm backed by The Carlyle Group, has held a first close on its 11th energy investment fund on about $1.3 billion from 92 investors, according to a filing with the U.S. Securities and Exchange Commission this week.
The firm, led by Kenneth Hersh, brought the fund to market earlier this year, targeting $4.5 billion, a limited partner who heard the fundraising pitch told peHUB in May. David Rubenstein, Carlyle’s co-chief executive officer, confirmed NGP Natural Resources XI was in the market during the firm’s first quarter earnings call in April, but he did not give a target.
The SEC documents however show a target of about $4.8 billion, which could indicate a cap on the fund. Carlyle’s broker/dealer affiliate, TCG Securities, is working as placement agent on the fundraising, according to the filing.
Carlyle spokesman Randy Whitestone declined to comment.
NGP closed its 10th fund on $3.58 billion in 2012, which came in below its $4 billion target. Ten percent of the capital in NGP Natural Resources X was allocated to NGP’s Global Adaptation strategy, which the firm has described as the way a growing population adapts to limited resources.
It is not clear if Fund XI also has an allocation to the Adaptation strategy, which targets investments in water and agriculture businesses. NGP has historically focused on oil and gas production, oil field services and “midstream,” including gathering, transporting and processing.
NGP did close its NGP Agribusiness Follow-on Fund on $402 million in April, which it describes as a continuation of the natural resources platform that began investing in agribusiness in 2011. The agribusiness fund targets investments in agricultural areas such as agricultural product distribution and services, commodity storage and merchandising, transportation and logistics, commodity processing, packaging and distribution and food and feed ingredient processing, according to a statement from the firm at the time.
Fund X was generating a 12 percent internal rate of return and about a 1.1x multiple as of February, according to performance information from the University of Texas Investment Management Company. Fund IX, which raised $4 billion in 2008, was producing a 14.8 percent IRR and a 1.5x multiple, according to UTIMCO’s numbers.
Carlyle acquired a 47.5 percent revenue interest in NGP, the former Natural Gas Partners, in 2012, the firm said in a statement at the time. Carlyle has no involvement in the governance or operations of the firm or its funds, according to a separate NGP regulatory filing with the SEC.
In June, NGP Natural Resources X and NGP Energy Technology Partners II invested an undisclosed amount in Oilfield Water Logistics, a new company formed to acquire, develop and manage water-related and other oilfield fluids infrastructure.
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