Post Oak Energy Capital has closed its new fund, Post Oak Energy Partners V LP (Fund V), with capital commitments totaling $600 million.
In all, the firm raised a total of $764 million for the strategy, including a co-investment vehicle, from a combination of legacy and new investors.
Fund V, like Post Oak’s four predecessor funds, will focus on the lower middle market segment of the North American upstream oil and gas industry. It has made commitments to five portfolio companies, with capital deployed in the Permian Basin and Utica and Haynesville shales.
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The fund has partnered with experienced management teams to provide equity capital for “growth, development, acquisitions and recapitalizations.”
“One of these investments involves a substantial minerals and royalty position that generates significant current yield and offers a strong growth profile in the core of the Permian Basin,” Post Oak said in a July 17 press release.
“We are pleased to announce the closing of Fund V, supported by a combination of legacy and new investors, all of whom we are honored to call partners,” said Frost Cochran, managing director of Post Oak. “We have captured exceptional opportunities in our lower middle market niche, and our investment team is actively sourcing additional portfolio investments to drive the consistent fund level performance our investors expect from Post Oak.”
Since inception, the Post Oak funds have collectively invested in more than 30 portfolio companies and raised approximately $3 billion in capital across managed funds and related vehicles.
Willkie Farr & Gallagher LLP acted as legal counsel to Post Oak Energy Capital. Capstone Partners, a Mizuho company, served as a placement agent for the final close of Fund V.
