EnCap Investments announced that it has closed EnCap Energy Capital Fund XII, L.P., with capital commitments of $5.25 billion, exceeding its initial target and hitting its hard cap. Inclusive of $1.2 billion of co-investment so far, the firm raised $6.4 billion associated with Fund XII.
EnCap has a long history of providing growth capital to proven management teams focused on the upstream sector of North America’s oil and gas industry. And Fund XII currently includes investments in twelve portfolio companies, ten of which are managed by teams the firm has successfully partnered with in previous funds.
Along with Fund XII, EnCap recently finalized fundraises for its two other investment verticals: EnCap Energy Transition Fund II and EnCap Flatrock Midstream Fund V. These three EnCap platforms achieved final closing this year and collectively raised approximately $9 billion of capital.
EnCap will utilize this capital to offer attractive risk-adjusted returns for its investors by partnering with experienced management teams. EnCap is also focused on playing a significant role in meeting global energy demand by delivering reliable, responsible, and affordable energy sources to support more significant economic opportunities and advancement across the globe.
Vinson & Elkins served as legal counsel to EnCap in forming Fund XII.
KEY QUOTES:
“We are pleased to announce the closing of Fund XII, significantly exceeding our initial target and ultimately hitting the hard cap. We see this fundraise as a strong demonstration of support for our longstanding investment strategy and are extremely grateful to our long-term investors who partnered with us in Fund XII. We are also very excited to add a significant number of high-quality new investors as partners, with approximately 40 percent of the capital commitments stemming from new relationships with both institutional investors and large family offices.”
-Managing Partner Doug Swanson
“We are grateful for the continued confidence our limited partners have shown our firm by entrusting us to steward their capital. We are also fortunate to be in business with some of the energy industry’s brightest entrepreneurs. The Fund XII capital raise was assisted by the strong performance of EnCap’s existing portfolio with over $22 billion of distributions returned to EnCap’s investors since the beginning of 2021. We remain very optimistic about the investment landscape for upstream oil and gas in North America and look forward to continuing to build on our successful track record of deploying capital and delivering value for our partners and portfolio companies.”
-Managing Partner Jason DeLorenzo
