First Reserve has promoted President Alex Krueger to the role of co-chief executive officer in a move characterized as the next step in a succession plan.
Krueger, who joined the firm in 1999 and was promoted to president in 2012, will share the CEO role with William Macaulay, who will continue to serve as chairman. Krueger also will retain the title of co-head of buyouts, which he shares with Managing Director Timothy Day.
The news of Krueger’s promotion went out in a recent note to limited partners, an LP source said.
When Krueger was named president in 2012, “he was likely to be the heir apparent,” the LP said. “This move kind of frankly further cements that.”
In another significant change at First Reserve, Managing Director Alex Williams, who worked out of the London office, is leaving the firm. It’s not clear when Williams will officially depart the firm or why he is leaving.
Williams was promoted to managing director in 2012 and played an important role in building First Reserve’s exposure in mining, the firm said in a press release at the time.
First Reserve last year closed its 13th flagship fund on $3.4 billion, well below its original target of $6 billion and its reduced goal of $5 billion. The firm raised $9 billion for its 12th fund in 2009, $3 billion below its target.
Fund XII generated a 4.7 percent IRR and a 1.2x multiple as of June 30, 2014, according to the California Public Employees’ Retirement System. Performance improved the prior quarter, when Fund XII had a 4 percent IRR and 1.1x multiple, according to CalPERS.
Fund XI, which closed on $7.8 billion in 2006, produced a 2.4 percent IRR and 1.1x multiple as of June 30, according to CalPERS.
First Reserve last year also closed its second infrastructure fund on its hard cap of $2.5 billion.
Photo sourced from First Reserve’s website