Mega fund raises US$7.8bn in three months

First Reserve, a US-based private equity firm that specialises in energy investments, has closed its latest fund, the First Reserve Fund XI, with total commitments of US$7.8bn. Fund XI is the largest fund ever raised by First Reserve, taking the group’s assets under management to more than US$12.7bn for its private equity buyout-focused funds.

The fund raising for Fund XI was completed in three months on the back of strong investor demand. Most of the fund’s investors are already clients of First Reserve.

Fund raising was helped by the fact that Fund XI focuses exclusively on the global energy sector, as energy prices are at an all-time high. Its primary focus is expected to be on equipment, manufacturing, and service companies that will benefit from increasing energy infrastructure spending as well as infrastructure assets. Its investments will span all stages of the energy cycle.

First Reserve’s Fund X, which was launched in 2004 with assets of US$2.3bn, is expected to be fully committed at the beginning of Q4.