Carlyle seeks to raise new $1b energy fund for non-US investments

Photo: Reuters

Carlyle Group, the world’s largest private equity firm, is raising up to $1 billion for a new fund to invest in oil and gas outside the United States as a stronger outlook for oil prices rekindles investor appetite, banking sources said.

The new vehicle comes after Carlyle International Energy Partners (CIEP), the group’s overseas energy investment fund set up in 2013, nearly exhausted its $2.5 billion warchest following a number of high-profile deals.

CIEP managing directors Bob Maguire and Marcel van Poecke met investors during a roadshow in the United States in recent weeks to raise interest in the new fund, several banking sources told Reuters.

The new fund will be used to create a New York-listed special-purpose acquisition company, or SPAC, that focuses on investment in oil and gas exploration and production outside the United States.

The fund will be called Regalwood Global Energy Ltd, according to a filing to the U.S. Securities and Exchange Commission from Oct. 2.

It is expected to be launched next year, the sources said.

A Carlyle spokeswoman declined to comment.

According to the filing, the initial public offering will seek to raise $345 million while CIEP will put an additional $250 million into the fund in a private placement.

The final size of the fund could be increased to up to $1 billion, depending on investor interest, the sources said.

Investment banks Citi and JPMorgan are advising on the process, according to the filing.

CIEP has been one of the most active private equity funds in recent years amid a downturn in the energy sector, backing companies in Europe, Africa and Asia.

Those include Neptune, a joint venture with CVC Partners that in May acquired Engie’s international exploration and production portfolio for $3.9 billion; and Assala Energy, which in March acquired Royal Dutch Shell’s Gabon operations for $587 million.

A recovery in oil prices – up around 40 percent since June – has bolstered confidence in the energy industry.

“There is definitely an upswing in appetite for oil and gas acquisitions as evidenced by our recent capital confidence barometer survey,” Andy Brogan, global oil and gas transaction leader at consultancy EY, told Reuters.

“Much of this is down to the (oil) pricing outlook and the confidence that comes with it.”

According to the EY survey published on Wednesday, 69 percent of oil and gas executives indicated they intend to pursue acquisitions, a record high for the poll.

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Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.