Riverstone to make 2x on Utopia’s exit

Riverstone Holdings and Kinder Morgan built Utopia Pipeline in 2016 as a joint venture.

Riverstone Holdings is set to make 2x its money on its exit of 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 will 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 ethane 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 has raised over $39 billion of equity capital.

Update: This story was updated to include information on how much Riverstone has raised to date.

Action Item: Check out Riverstone’s form ADV here.