Riverstone Holdings is set to make 2x its money on its exit from Utopia Pipeline, after a three-year hold, a source familiar with the process told PE Hub.
The energy-focused buyout firm agreed to sell its 50 percent ownership stake in the pipeline to a South Korean-based consortium of infrastructure investors, which includes Shinhan Investment Corp., Samtan Co., EIP Investment Co. and KDB KIAMCO.
As part of the deal, Kinder Morgan will remain the pipeline’s operator and continue its ownership in the joint venture.
In 2016, Riverstone formed a joint venture with Kinder Morgan to construct Utopia. The 268-mile pipeline transports methane sourced from the Marcellus and Utica shales to the Sarnia petrochemical market in Ontario, Canada.
The funds for Utopia came out of Riverstone Global Energy and Power Fund VI, which closed on $5.1 billion in 2016, the source said. The fund was initially targeting $8 billion, according to an SEC filing.
Riverstone, based in New York, invests in energy and power businesses. The firm manages nearly $38 billion of capital.
Action Item: Check out Riverstone’s form ADV here.