First Reserve Corp. is looking to raise $6 billion for its thirteenth fund, a source says.
The target is much lower than the $9 billion collected by the firm’s last fund, First Reserve Fund XII LP, in 2009. Fund XII had initially been looking to raise $12 billion but came in below its target. Investors in Fund XII include the California State Teachers’ Retirement System and the California Public Employees’ Retirement System as well as the Washington State Investment Board.
Fund XII hasn’t performed well. The pool has generated a net IRR of -1.8 percent, according to Sept. 30 data from CalPERS. The results are worse with CalSTRS, which according to March 31, 2011, data, has the fund producing a net IRR since inception of -8.9 percent.
First Reserve’s eleventh fund, which raised $7.8 billion in 2006, is somewhat better. First Reserve Fund XI LP generated a net IRR of -0.1 percent, CalPERS said. But CalSTRS said the pool generated a 3.34 percent net IRR since its inception (according to March 31, 2011, data).
News of the fundraising was first reported by Private Equity international.
First Reserve has gone through some management changes. Mark McComiskey, co-head of the buyouts group at First Reserve, left the firm at the end of April. In January, First Reserve promoted nine employees to managing director, Bloomberg News reported.
First Reserve, which has offices in Greenwich, Conn., Houston and London, is an energy focused buyouts firm. The shop has raised $23.1 billion in capital.
Executives at First Reserve declined comment.
(Luisa Beltran is a senior writer for peHub.)