EnCap Flatrock Midstream, LLC announced the final closing of its second private equity fund, EnCap Flatrock Midstream Fund II, L.P., (EFM II) with total capital commitments of $1.75 billion. The fund exceeded its $1.25 billion target and was significantly oversubscribed to reach its hard cap thanks to strong support from the firm's existing investors along with new commitments from a number of leading institutional investors, including public and private pension funds, insurance companies and university endowments and foundations.
"We are very excited to have the continued support we've received from our existing investors and pleased to welcome some very strong additions to our investor base," said Bill Waldrip, EnCap Flatrock Midstream's founder and one of three managing partners. "Our success in raising Fund II is a testament to the attractive investment opportunities in the midstream sector of North America's oil and gas industry, our focused approach and the quality of our team. We're excited about the opportunities that lie ahead."
EnCap Flatrock Midstream now has nearly $3 billion in investment commitments from a broad group of prestigious institutional investors and has made commitments to 10 portfolio companies across Funds I and II. Fund II announced a commitment to Caiman Energy II, LLC earlier this month, as part of a $285 million total commitment from the firm. Caiman II will develop midstream infrastructure in the rich gas region of Ohio's Utica Shale, including gathering pipelines and natural gas treating, processing and fractionation facilities. EFM II will be announcing a second commitment soon.
"As we invest Fund II, we will maintain our proven approach of investing in resource plays with attractive upstream economics and the very best midstream management teams that have successful track records. We're excited about putting this additional capital to work and look forward to partnering with strong entrepreneurs and management teams in high-growth opportunities," Waldrip added.
EFM II is EnCap Investments L.P.'s 16th institutional fund and brings the aggregate total raised by EnCap Investments over its 25-year history to more than $13 billion. EnCap Flatrock Midstream has invested in 10 companies and has had two realization events, including the sale of Caiman Eastern Midstream, LLC to Williams Partners for approximately $2.5 billion in April 2012.
In addition to Caiman Energy II, current portfolio companies include Cardinal Midstream, Rangeland Energy, Caballo Energy, Nuevo Midstream, US Infrastructure and Lucid Energy.
Thompson & Knight served as legal counsel for the fund.