Blue Tip Looks to Raise $350 Mln for Fund II

Blue Tip Energy Management is expected to begin fundraising for its second fund soon, a source says.

The pool is seen raising about $350 million, the person says. This is up from the roughly $200 million Blue Tip raised in 2007 (but closed in 2008) for its first fund. Endowments, insurance companies, fund-of-funds and some pension funds were investors of fund I.

Blue Tip is expected to begin fundraising for the second pool within 30 days, the source says. A first close is expected this summer, the person says.

Blue Tip has not hired a placement agent.

Houston-based Blue Tip invests in on-shore oil and natural gas assets. The PE firm typically invests up to $25 million, according the firm’s web site. Blue Tip, unlike other PE firms, chooses to operate the assets it owns.

Officials for Blue Tip declined comment.