T. Boone Pickens’ firm nears $100 mln first close for PE fund

BP Capital is nearing a $100 million first close for its latest PE fund, two sources said.

The first close for BP Natural Gas Opportunity Partners LP will likely occur after the first of the year, one of the sources said.

BP Capital, the investment firm founded by T. Boone Pickens, began fundraising earlier this year, peHUB has reported. The pool has a $500 million target and a $750 million hard cap. The first close is expected to coincide with the funds first two deals, that are estimated at $50 million each, a source said.

Pickens, who is 85-years old and known as the “Oracle of Oil,” founded BP in 1997. BP, which stands for Boone Pickens, invests in energy futures and stocks of public companies in various energy sectors and energy-dependent industries, according to the firm’s website.

Dallas-based BP Capital is known for its energy-focused hedge funds. BP also has a private equity unit, BP Energy Partners, which is separate from the hedge funds. The unit has been doing private equity deals for the past 12 years, sources said.

BP Natural Gas Opportunity Partners LP is the firm’s first private equity fund for outside investors, peHUB has reported. The fund is focused on the niche market of energy substitution, a source said. Current users of crude oil, or any higher energy source, are trying to lower their cost structure by substituting natural gas.

BP Capital declined comment.

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