EnCap Investments has closed an energy infrastructure fund with $791.6 million in capital commitments. The vehicle will focus on the midstream sector of the oil and gas industry in North America, and will be managed in partnership with Flatrock Energy Advisors.
EnCap Investments L.P., an oil and gas private equity firm with offices in Houston, Texas and Dallas, Texas, together with its partner, Flatrock Energy Advisors, LLC, with offices in San Antonio, Texas and Edmond, Oklahoma, today announced that they have closed EnCap Energy Infrastructure Fund, L.P., with total capital commitments of $791.6 million. The fund provides growth capital to proven management teams focused on the midstream sector of the oil and gas industry in North America. Since its inception in 1988, EnCap has managed over $7 billion of capital commitments, providing growth capital to 169 companies and establishing itself as the leading source of private equity to the oil and gas industry. In establishing the midstream fund, EnCap joined forces with Flatrock, a group of highly-regarded midstream experts who left their advisory practice to become the investment team of the fund. In association with this change of responsibilities, Flatrock will now be known as EnCap Flatrock Midstream.
David B. Miller, Gary R. Petersen, D. Martin Phillips and Robert L. Zorich, the four Managing Partners of EnCap, said, “We raised the midstream fund in an incredibly challenging fundraising environment, and we are grateful for the strong support we received from our existing investors, as well as a number of new institutional partners. Although the fundraise was a long and difficult process, we did, in fact, exceed our original target capitalization of $750 million, which is a real achievement in this market.” Dennis F. Jaggi, William R. Lemmons, Jr. and William D. Waldrip, the three Senior Partners of EnCap Flatrock Midstream, said, “We believe that the successful fundraise was due in large part to EnCap’s reputation and track record of success across multiple industry cycles, as well as the deep midstream expertise of our team. We’re very excited about the compelling investment opportunities we see in the midstream space, and we look forward to continuing EnCap’s tradition of generating attractive returns for its investors.” Since January 2009, the midstream fund has committed $215 million of its total fund capitalization to five portfolio companies.