EnCap Investments closed its EnCap Energy Capital Fund X at $6.5 billion, hitting its hard cap and surpassing its $5 billion target, an EnCap spokeswoman said in an e-mail.
The fund, which provides growth capital to companies in the upstream sector of North America’s oil and gas industry, was “significantly oversubscribed,” said an EnCap news release.
Approximately 90% of the capital raised for EnCap Energy Capital Fund X came from previous EnCap investors, and one portfolio investment has already been made for $650 million, the spokeswoman wrote. Additional information could not be learned by press time.
Investors in EnCap Energy Capital Fund X include the $80.3 billion Minnesota State Board of Investment, St. Paul; $34.9 billion Illinois Municipal Retirement Fund, Oak Brook; $24.6 billion Texas County & District Retirement System, Austin; $14.7 billion Arkansas Teacher Retirement System, Little Rock; and $12.7 billion Maine Public Employees Retirement System, Augusta.
All were previous EnCap investors.
“We are very fortunate to have received such strong support from our existing investor base, especially during a period of significant volatility in our industry,” said Doug Swanson, managing partner, in the news release. “Our long-term partnership with many high-quality institutions and our extensive track record in the business allowed for a quick and efficient fundraise, which positions us to respond to the market opportunities that are likely to arise in this cycle.”
Predecessor fund EnCap Energy Capital Fund IX closed at its $5 billion hard cap in January 2013. The fund was also “substantially oversubscribed,” the spokeswoman wrote.