Research

Market at a Glance – Riverstone spends more than $5.1 bln on pair of oil deals

March 5 2018

February continued its slow churn of fundraising. Over the past two weeks, U.S.-based buyout and mezzanine funds added $3.7 billion in commitments to this year’s total, leading this time in 2017 by $8.8 billion, or 51.2 percent.

Goldman Sachs’s Petershill Group finalized its latest pool, exceeding its $2 billion target and closing on $2.5 billion. The fund will buy passive, minority stakes in midsize private equity firms, with assets of $5 billion to $20 billion.

Bertram Capital hit the $500 million target on its third flagship. The San Mateo, California, firm focuses on the lower middle-market.

Philadelphia’s 1315 Capital wrapped-up its sophomore vehicle at $300 million, beating the $250 million goal. The firm targets the growth-equity healthcare sector.

Since Buyouts last went to press, dealmaking ramped up, increasing this year’s sum by $11.7 billion. This year’s PE-backed total now sits at $28.1 billion, trailing last year by $1.4 billion, or 4.9 percent.

Riverstone Holdings opened its wallet and made a pair of Houston energy deals for more than $5.1 billion. The bigger of the two was for Alta Mesa Holdings, an owner and operator of oil and gas exploration and production, for a little under $3.6 billion. The other was for Kingfisher Midstream, a provider of midstream energy services, for nearly $1.6 billion.

The largest deal with disclosed value was made by Carlyle Group and CVC Capital Partners. The investor team acquired a 70 percent stake in Engie E&P International, a producer of crude petroleum and natural gas, for $3.9 billion.