Energy and resources-focused global private equity firm Denham Capital Management has closed its sixth fund, Denham Commodity Partners Fund VI LP. The fund launched in July 2011 and has raised $3 billion from a variety of institutional investors globally, representing leading foundations, endowments, public and private pension funds, sovereign wealth funds and family offices.
Denham Capital Management LP, a leading energy and resources-focused global private equity firm, announced today the closing of its sixth fund, Denham Commodity Partners Fund VI LP.
Launched in July 2011 and closed eight months later in March 2012, Denham Capital raised $3 billion in total third-party commitments for Fund VI from a variety of institutional investors globally, representing leading foundations, endowments, public and private pension funds, sovereign wealth funds and family offices. Fund VI was oversubscribed, exceeding the targeted cover amount of $2.5 billion. Denham received strong support from investors in its prior fund, with nearly 90 percent of commitments participating in Fund VI. Denham also diversified its investor base by adding new limited partners from the public sector within the U.S. as well as from Europe and Asia.
“We are very pleased to have completed the Fund VI raise in what remains a challenging global fundraising environment,” said Stu Porter, Chief Executive Officer of Denham Capital. “Thanks to very strong relationships with our limited partners, who share our belief that investment opportunities will continue to be robust around the sustained global demand for energy and resources products and services, we are able to quickly return our undivided attention to capitalizing on opportunities in these sectors. We are grateful for the support of our existing and new limited partners.”
Consistent with Denham Capital’s prior funds, Fund VI will focus on identifying value dislocations in the energy and resources sectors worldwide, and applying Denham’s operational and commercial expertise and risk management strategies to create value in those investment opportunities. The Fund will invest in companies and assets in the oil and gas, metals and minerals and power and renewables sectors, and pursue investments across all stages of the corporate and asset lifecycle and all segments of the capital structure.
The successful closing of Fund VI brings the amount of invested and committed capital under Denham Capital’s management to approximately $7.3 billion. To date, Fund VI has made investments in Cascade Petroleum, a Rockies-focused E&P company; Ursa Resources II, a follow-on venture with the Ursa Resources team, which Denham Capital successfully backed previously; Fotowatio Renewable Ventures, a leading global solar power developer; Tremont Holdings, a partnership with Pangea Exploration to develop mining projects across Africa; and Stellar Mining, a Peruvian mining venture.
Latham & Watkins LLP served as the Fund’s legal counsel and Park Hill Group LLC acted as placement agent.