NGP Energy Capital targets $4.5 bln for Fund XI

Carlyle Group-backed NGP Energy Capital Management is in the market targeting $4.5 billion for its 11th fund, according to a limited partner who has heard the firm’s pitch.

David Rubenstein, The Carlyle Group’s co-chief executive officer, confirmed during Carlyle’s first quarter earnings call on April 28 that NGP is in the market raising NGP Natural Resources XI, though he did not give a target. It was not clear how long the fund has been officially in the market.

NGP did not return a request for comment by sister website peHUB.

The firm, led by chief executive officer Kenneth Hersh, closed its 10th fund on $3.58 billion in 2012. That fund came in below its $4 billion target. Ten percent of the capital in NGP Natural Resources X was allocated to NGP’s Global Adaptation strategy, described as the way a growing population adapts to limited resources.

It was not clear if Fund XI also will have a carve-out for the Adaptation Strategy, which includes investments in water and agriculture businesses. NGP’s strategies historically focus on oil and gas production, oil field services and “midstream,” including gathering, transporting and processing.

Fund X was generating a 1.17x investment multiple as of Sept. 30, 2013, according to performance information from the Oregon Public Employees Retirement Fund.

In 2012, Carlyle acquired a 47.5 percent revenue interest in NGP, the former Natural Gas Partners, the firm said in a statement at the time.

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