Riverstone to list new £550m energy fund on LSE

The newly-formed closed-ended energy investment company's initial public offering will take place on 29 October. Following admission, the company will seek inclusion in the FTSE UK index.

Founded in March 2000, energy-focused private equity firm Riverstone has equity worth close to $25bn across seven private investment funds. Its most recent fund, the Global Energy and Power Fund V, held a final close on $7.7bn in June 2013.

Riverstone has so far generated an IRR of 58% on all realised investments. The firm's portfolio includes UK shale gas exploration company Cuadrilla, Fairfield Energy and Ensus.

Investors
Five cornerstone investors, alongside Riverstone, have committed to contribute up to £550m in a private placement. Riverstone itself has commited to acquire £50m of ordinary shares in the issue.

The five investors include AKRC, an affiliate of the Alaska Permanent Fund Corporation; KFI, a private investment vehicle of Louis Bacon; Hunt Oil Company, a private company directed by investor Ray Hunt; Casita LP, a European family office; and the McNair Group, a management services and investment firm.

In addition to this, the company will raise capital through global placings to institutional and qualified individual investors in various jurisdictions, as well as offering subscriptions to investors in the UK and globally.

Investments
The fund will invest exclusively across the global energy industry, with a focus on exploration and production, as well as mid-stream energy sub-sectors. Investments will be made globally, including the US which has traditionally been Riverstone's core geographical focus.

REL aims to invest the net proceeds of the issue within the two to three years following the admission.

People
Riverstone founders David M Leuschen and Pierre F Lapeyre Jr will sit on the board alongside Robert Wilson, who will serve as chairman of REL. Jim Hackett and John Browne will also join the board.

Advisers
Equity – Goldman Sachs International, JP Morgan Cazenove, Deutsche Bank AG, Morgan Stanley Securities (Bookrunners).

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