HitecVision V LP meets hard-cap of $800m

01 March 2008

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HitecVision has received commitments of $800m for HitecVision V LP, meeting its hard-cap. The fund far exceeded its $600m target and was significantly oversubscribed. The vehicle has a 10+1+1 lifespan with a five-year investment period.

The international fundraising process started in November 2007 and the vehicle held a first close on more than $500m in December 2007. The fund attracted more than twice as much in commitments than its predecessor, HitecVision Private Equity IV, which closed on $300m in June 2006 (July/August 2006, page 5).

MVision acted as placement agent for the fund and BA-HR provided legal advice.

Investors

Argentum was one of the cornerstone investors and committed close to 10% of the fund, marking its largest investment to date. There was a high degree of returning investors from the previous HitecVision funds, including Formuesforvaltning, Gjensidige Forsikring, Storebrand, KLP Forsikring, Nordea and AP3. The LP base included new international investors such as Goldman Sachs, Adam Street, Access Capital Partners, ATP Private Equity Partners, LGPI (KEVA) and investment funds advised by Partners Group. The fund also attracted elite US endowments and pension funds. The GP has made a substantial contribution to the fund.

Investments

The vehicle is looking to make buyout and growth investments in international oil and gas companies with revenues of $50-300m. The fund will build on the existing strategy of the previous fund of a buy-and-build strategy, and equity investments per company will range from $30-150m.

People

The fundraising team was headed by CEO and founding partner Ole Ertvaag and supported by senior partner Pal M Reed, COO and investment manager Pal A Dahlberg and director of investor relations Randi E Hognestad. HitecVision has a 15-strong team responsible for sourcing investments.

Name: HitecVision V LP

Target: $600m

Closed on: $800m

Focus: Buyout, growth capital

Contact: Ole Ertvaag

Address: HitecVision Private Equity AS, Klubbgaten 1, PO Box 8120, 4068 Stavanger, Norway. Tel: +47 51 20 20 20; Fax: +47 51 20 20 51

Advisers: MVision (Placement agent); BA-HR (Legal).