First Reserve raises $2.5 bln for second energy infrastructure fund

First Reserve said Monday that it has closed $2.5 billion for its second energy infrastructure fund. Its initial target was $2 billion.


GREENWICH, Conn., HOUSTON, LONDON, and HONG KONG, June 16, 2014 /PRNewswire/ — First Reserve, the largest global private equity and infrastructure investment firm exclusively focused on energy, today announced the closing of its second energy infrastructure fund, First Reserve Energy Infrastructure Fund II, L.P. (“FREIF II” or “the Fund”). Formally launched just eight months ago, the Fund was oversubscribed beyond its initial target of US$2 billion, ultimately closing at its US$2.5 billion hard cap. First Reserve now has over US$4 billion dedicated to investing in energy infrastructure opportunities.
The Firm is delighted to have received support from a highly diversified base of Limited Partners including substantial support from its existing LPs as well as new investors from around the globe.
FREIF II will continue to focus on long-lived energy infrastructure investments throughout the energy value chain, including (1) contracted midstream, such as pipelines, storage and LNG facilities; (2) contracted power, which includes both renewable and conventional generations; (3) regulated transmission and distribution; and (4) contracted energy assets including floating storage facilities and other essential large-scale energy infrastructure assets.
“First Reserve initially launched an energy infrastructure investment program to enable our team to offer broader and more strategic solutions to both our wide network of corporate partners and our investors. We are thrilled at how the strategy has played out, meeting our expectations of delivering long-term contracted revenues. The success of this most recent fundraise is a testament to our investors’ belief in our investment model and the strong execution of our infrastructure investment team,” said William Macaulay, Chairman and Chief Executive Officer of First Reserve.
The Fund expects to continue to emphasize strategic joint ventures, a format often used by First Reserve given its 30-year stature as an energy industry specialist. To date, First Reserve Energy Infrastructure Fund I, L.P. has been privileged to form exclusive partnerships on nearly all its portfolio investments, utilizing its in-house investment and asset management expertise to deliver ongoing yield to its LPs.
Mark Florian, Managing Director and Head of Infrastructure added, “With a fully dedicated infrastructure investment team that has deepened substantially since the first Fund, we believe we remain well-positioned to continue generating attractive, proprietary opportunities. By drawing on the vast base of experience in both the infrastructure team and the larger First Reserve platform, we feel we have distinguished ourselves as a value-add strategic partner. We are both honored and excited to be able to continue prosecuting these kinds of opportunities on behalf of our Limited Partners in both Funds.”
About First Reserve
First Reserve is the largest global private equity and infrastructure investment firm exclusively focused on energy. With over 30 years of industry insight, investment expertise and operational excellence, the Firm has cultivated an enduring network of global relationships and raised more than USD $26 billion of aggregate capital since inception. First Reserve has completed more than 475 transactions (including platform investments and add-on acquisitions) on six continents. Its portfolio companies operate in approximately 50 countries and span the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services and infrastructure.
The energy infrastructure investment business of First Reserve currently has over US$4 billion of assets under management to pursue investments in contracted and regulated assets throughout the energy space.
First Reserve has offices in Greenwich, CT; Houston, TX; London, U.K. and Hong Kong. Please visit for more information.