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Riverstone Closed One Fund, Almost There On Another

Updated As peHUB reported last week, Riverstone LLC quietly closed on $6 billion for its energy fund, called Riverstone/Carlyle Global Power & Energy Fund IV LP. The fund, a joint effort between Riverstone and Carlyle, invests in oil, gas, and the traditional energy fare.

On the flipside, Riverstone has another fund in the market. This one focuses on renewable energy and is called Riverstone/Carlyle Renewable Energy Infrastructure Fund II LP. That vehicle seeks to raise $4 billion and has closed on $3.4 billion in commitments, a source said. It’s been in the market since January of 2008.

Goldman Sachs and J.P. Morgan are listed as the fund’s placement agents, and the fund has received commitments from both CalPERS and CalSTERS, according to a regulatory filing.

You may remember the first iteration of this renewable energy fund had $685 million in commitments. With that money, it purchased Green Earth Fuels LLC and announced a JV with Bunge North America. You may also remember it was called the Carlyle/Riverstone fund, and not the other way around. In an attempt to distance itself from Carlyle, Riverstone has taken the lead on the management of future energy funds.

Also notable is Riverstone’s recent involvement in the New York State pension fund scandal. Managers of the firm’s second energy fund are accused of retaining accused fraudster Henry Morris in exchange for a $500 million commitment from New York State Common Retirement Fund. More curiously, Riverstone co-founder David Leuschen is accused of plunking down $100,000 to fund “Chooch,” a ridiculous movie produced by Logslisci’s brothers (We’ve posted the trailer here…).

However, today I unearthed an even more outlandish tidbit on Leuschen that will likely stay unconfirmed but adds to the lore. Apparently, two years ago Riverstone held its annual LP meeting at SwitchBack Ranch, a vast Montana ranch owned by Leuschen. Activities for investors at this retreat included both cattle branding and castration. Yikes. I can’t vouch for the veracity of that statement, but if it is true, let’s just hope none of Riverstone’s investors were vegetarians…

A Riverstone spokesperson declined to comment.

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