Kimmeridge Energy Management Co. closed its fourth fund on $400 million for investments in unconventional oil and gas assets in the U.S. Kimmeridge raised a total of $650 million with co-investments in upstream oil and gas opportunities alongside the fund. Fund IV is 58 percent deployed. The firm has raised more than $1 billion this year with Fund IV, related co-investments and a $350 million Permian-focused mineral fund.
Kimmeridge Energy Management Company, LLC (“Kimmeridge” or the “Firm”), an energy private equity firm focused on making direct investments in unconventional oil and gas assets in the U.S., today announced the final closing of Kimmeridge Energy Fund IV (the “Fund” or “Fund IV) at its $400 million hard cap. In conjunction with co-investments alongside the Fund, Kimmeridge has raised total capital commitments of $650 million to invest in upstream oil and gas opportunities. Inclusive of Fund IV, its related co-investments, and a $350 million Permian-focused minerals fund, Kimmeridge has raised over $1 billion of limited partner commitments in 2017, and approximately $1.7 billion since the firm’s founding in 2012.
Fund IV is focused on directly acquiring and developing unconventional assets in top-tier basins that sit at the front end of the U.S. cost curve and are positioned to outperform through the commodity price cycle. Fund IV is currently 58% deployed.
Ben Dell, Founder and Managing Partner of Kimmeridge, said, “We are pleased with the Fund’s reception and would like to thank our limited partners for their support. We have already made several compelling Fund IV investments and identified a number of exciting oil and gas opportunities that we believe will create significant value for our investors.”
Led by founders Ben Dell, Dr. Neil McMahon and Henry Makansi, the Kimmeridge team has deep industry, investment and operating expertise. Kimmeridge maintains a fully-staffed, in-house operating team, with experience across all major upstream functions and disciplines. This structure empowers the Fund to directly identify, develop and monetize promising assets, in contrast to the more traditional private equity energy model in which fund sponsors recruit management teams and outsource oversight of investments. With Kimmeridge’s direct model, more of the investment return accrues to limited partners.
The Fund received support from a diversified base of existing and new investors, including university endowments, foundations, family offices, public pension funds and a sovereign wealth fund.
A Sidley Austin LLP team, led by David Kreisler, served as fund counsel. Kimmeridge did not use a placement agent.
About Kimmeridge Energy
Founded in 2012 by Ben Dell, Dr. Neil McMahon and Henry Makansi, Kimmeridge is an energy private equity firm focused on making direct investments in unconventional oil and gas assets in the U.S. Rather than partner with separate management teams, Kimmeridge identifies, owns and operates each of its assets directly, maintaining an in-house geology and operating team with experience across all major E&P functions.