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 of fund XII include CalSTRS and CalPERS as well as the Washington State Investment Board.
Fund XII hasn’t performed well. The pool has generated a net IRR of -1.8%, 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%.
First Reserve’s eleventh fund, which raised $7.8 billion in 2006, is somewhat better. First Reserve Fund XI L.P. generated a net IRR of -.1%, CalPERS said. But CalSTRS said the pool generated a 3.34% 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 PE firm at the end of April. In January, First Reserve promoted nine employees to MD, Bloomberg News reported.
First Reserve, which has offices in Greenwich, Conn., Houston and London, is an energy focused PE firm. The buyout shop has raised $23.1 billion in capital.
Officials for First Reserve declined comment.
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