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Quantum Energy prepares final close on Fund VI

Despite turmoil in the energy sector, Quantum Energy Partners is about to close its sixth fund on its hard cap, and possibly more, according to a person with knowledge of the fundraising.

Quantum is set to hold a final close on Fund VI this week on its $3.25 billion hard cap, plus a GP commitment, the person said. It’s not clear how much the fund total will reach with the GP commitment. Dow Jones earlier reported Fund VI was approaching a final close on $3.45 billion.

Park Hill Group worked as placement agent on the fundraising.

Fund VI launched in May 2014 and quickly reached its $2.5 billion target in October, a source told peHUB in a previous interview. The firm, led by S. Wil VanLoh Jr, held a first close on $1.17 billion over the summer, two sources told peHUB at the time.

Quantum’s fifth fund, which closed on $2.5 billion in 2009, produced a 19.75 percent internal rate of return and a 1.35x multiple as of Dec. 31, 2013, according to the Texas County & District Retirement System.

Quantum in March agreed to invest up to $1 billion in a new entity to buy and develop oil and gas assets that would be managed by Linn Energy LLC, according to Reuters.

Energy fundraising has taken off in recent years, before oil prices dropped. Energy-focused funds collected about $42.4 billion in 2014 and $45.3 billion in 2013, its peak year, according to Preqin.

These totals are way up from prior years: Energy firms raised $29.7 billion in 2012 and $18.9 billion in 2011, Preqin said.

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