Energy & Minerals Group expects to dig up $3 bln for second close

  • Energy & Minerals Group targets $4 bln for Fund IV
  • Held first close on $1.1 bln in October
  • Closed prior fund on $3 bln

Energy & Minerals Group is eyeing a potential second close on $3 billion for its fourth fund after collecting $1.1 billion for its first close in October, according to a person with knowledge of the fundraising.

EMG, which was founded in 2006, launched Fund IV this year with a $4 billion target. The second close is expected to be held by the end of the year, the person said.

Alexandra Holzer, a principal in fundraising and investor relations, did not return a call for comment. Park Hill Group is working as placement agent.

The fundraising comes quickly after EMG closed its third fund on $3 billion last year. Fund III, while still early in its J-curve cycle, produced a 0.78 percent internal rate of return and a 1.01x multiple as of June 30, according to performance information from alternative assets data provider Bison.

EMG targets investments across the natural resources industry with an emphasis on energy, minerals and metals, according to a Fund III investment report from Portfolio Advisors from last year. EMG looks to partner with management teams and make equity investments up to $1 billion, with up to $400 million coming from the fund and the balance from co-investors, Portfolio Advisors said.

Senior executives at EMG include founder, Managing Partner and Chief Executive Officer John Raymond and founder and Managing Partner John Gregory Calvert.

Action Item: Check out EMG’s Form ADV here:

Photo: Piotr Dytko, 42, a miner who has has worked for 24 years in mines, looks on as he works about 500 meters underground at the Boleslaw Smialy coal mine, a unit of coal miner Kompania Weglowa (KW) in Laziska Gorne, Silesia, southern Poland September 11, 2015. REUTERS/Kacper Pempel