Ridgewood Energy Corp. closed private-equity fund Ridgewood Energy Oil & Gas Fund III LP (Fund III). It is the largest fund to date, exceeding the $1.5 billion target and closing with more than $1.9 billion in commitments, the company said July 21.
Fund III will support deepwater U.S. Gulf of Mexico (GoM) oil development. The company is focused on development for $20 per barrel or less.
Institutional investors who provided the commitments included state and corporate pension plans, university endowments and foundations, private wealth managers and family offices.
Fund III follows Ridgewood Energy Oil & Gas Fund II LP, which closed on $1.1 billion in early 2014. Rowayton, Conn.-based Eaton Partners LLC was placement agent for Fund III. Vinson & Elkins LLP was legal counsel.
Houston-based Ridgewood also manages capital and commitments for investment in the deepwater U.S. GoM on behalf of Riverstone Holdings LLC, which has invested alongside Ridgewood Energy’s funds since 2010.
“Our limited partners continue to recognize the outperformance potential of Ridgewood Energy's deepwater Gulf of Mexico oil strategy, where we have the ability to find and develop significant oil reserves for a very low cost per barrel. Our disciplined approach allows us to deliver strong returns across a range of oil price environments, and recent dislocation in the sector has created even more compelling opportunities for investment," said Kenny Lang, Ridgewood’s president and COO.
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