In yet another energy fund close, EIV Capital LLC has raised $267 million.
EIV Capital is a Houston-based private equity firm. The fund, EIV Capital Fund II LP surpassed its original $200 million target. The firm was able to get participation from 100 percent of the limited partners from its first fund.
The fund will invest in midstream and oilfield services businesses. EIV generally invests between $10 million to $40 million per deal. So far, EIV Capital Fund II has made two investments - one in Great Northern Midstream LLC, a greenfield midstream development project in the Bakken shale play, and another in Mas Georgia LFG LLC, a gas and energy project developer, according to Terence Crikelair, managing partner at Champlain Advisors. Champlain was placement agent for the new fund.
The firm is just one of several PE groups that have closed energy-focused private equity funds recently. In January, NGP Energy Capital Management closed a $5.3 billion fund, and before that (also in January), Five Point Capital Partners closed a $450 million fund.
Low crude oil prices are expected to cause distress in oil and gas businesses, which in turn, is expected to fuel M&A activity as valuations for some companies drop. For more, see Investors Flow Into Oil & Gas.