Energy Spectrum near two thirds on $1.2 bln Fund VII

Firm: Energy Spectrum Capital

Fund: Energy Spectrum Partners VII LP

Target: $1.2 billion

Amount raised: $784 million

Including partnership interests, Energy Spectrum Capital has sold $783.9 million for Energy Spectrum Partners VII LP, according to a filing. The fund only accepts commitments of $5 million or more and lists a date of first sale on Sept. 2, according to the filing.

Energy Spectrum Capital targets oil and gas gathering and transportation systems, processing and treating facilities, storage facilities and other infrastructure assets. It also invests in some energy service and power development companies.

Its typical investments range from $50 million to $150 million of equity, including follow-on equity as portfolio companies execute growth plans, according to its website. It has sponsored or invested in more than 45 portfolio companies to date.

Executives in the fund include Thomas Whitener, James Spann, James Benson, Leland White, Peter Augustini, Benjamin Davis and Mark Honeybone. A call to the firm’s Dallas office by Buyouts was not returned.

Fund VII drew a $75 million commitment from the San Francisco City & County Employees’ Retirement System on Aug. 13, according to public documents. It was the pension system’s first commitment to that fund series.

Energy Spectrum Partners V, the 2006 vintage fund, rang up an IRR of 32.7 percent as of March 31 for the Houston Firefighters’ Relief & Retirement Fund, according to fund performance data compiled by Buyouts. That was well ahead of the top quartile threshold of 14.2 percent for that vintage year.

The 2010 vintage Energy Spectrum Partners VI had an IRR of -2 percent for the Houston Firefighters as of March 31, but that fund is still relatively early in its life cycle.

Other energy funds have turned in some solid performances: EnCap Energy Infrastructure Fund rang up an IRR of nearly 46 percent as of Dec. 31 as one of the top funds from 2009; White Deer Energy’s IRR of about 35 percent also landed it near the top of the list for the same year, according to the Buyouts fund performance database. EnCap Energy Capital Fund IV turned in an IRR of 50.5 percent, near the top of the 2008 vintage.

So far this year, buyout funds investing in energy have raised more than $17.2 billion as LPs pony up commitments to tap into growing North American oil and gas production, according to fundraising data compiled by Buyouts.