Riverstone raises $181.4 mln toward $1 bln energy credit fund

Riverstone Holdings has raised at least $181.4 million for its debut energy credit fund that is targeting $1 billion, according to a filing with the SEC.

The fund, called Riverstone Credit Partners, has raised more than the amount listed in the filing, according to a person with knowledge of the firm. However, it’s not clear how much the fund has raised.

A spokesman for Riverstone declined to comment.

The filing shows 54 investors have committed to the fund. LPs said in past interviews the fund would likely charge a 15 percent carried interest rate and have a two-year investment period, illustrating the opportunistic nature of energy credit in the current market, which has been roiled by falling oil prices. Management fees would be charged on invested rather than committed capital, one LP said.

Riverstone launched the fund in February amid a wave of similar vehicles set up by private equity firms to take advantage of declining oil prices. Riverstone’s fund focuses on investments in “secondary paper” like high-yield bonds, as well as “injecting fresh capital into new or existing situations,” an LP who has heard the fund pitch told Buyouts in a previous interview.

Other firms raising vehicles to take advantage of dislocation in energy markets include Angelo Gordon & Co, Apollo Global Management and Blackstone Group’s GSO Capital Partners.

Action Item: Read the Form D: filing: http://www.sec.gov/Archives/edgar/data/1635960/000163596015000004/xslFormDX01/primary_doc.xml

Photo courtesy of Shutterstock