T. Boone Pickens’ firm seeks $500 mln for PE fund

T. Boone Pickens

BP Capital, the investment firm founded by T. Boone Pickens, is out fundraising for a private equity fund, five sources said.

BP Natural Gas Opportunity Partners LP has a $500 million target, the sources said. The fund is looking to invest in the energy substitution market as the U.S. transitions from crude oil to natural gas.

EdgeLine Capital Partners is a placement agent for the fund.

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.

In April, Loren Soetenga left Quintana Capital Group and joined BP Energy Partners where he is an MD,  they said. Michael Watzky also left MatlinPatterson Global Advisers, where he was a partner, in 2012 and is now with BP Energy Partners. Watzky along with Alex Szewczyk are co-managing partners of BP Energy Partners.

BP Natural Gas Opportunity Partners LP is the firm’s first private equity fund for outside investors, sources said.

BP Capital declined comment.

Photo courtesy of Reuters/Fred Prouser