Riverstone energy fund IPO raises £760m

The IPO, which unquote" reported on in September, initially aimed to raise between £670m and £1.5bn. Shares started selling at £10 each but fell 6% in early trading, before closing at £9.49.

The fund will invest exclusively across the global energy industry, with a focus on exploration, production, storage and transportation of oil and gas, as well as mid-stream energy sub-sectors. Investments will be made globally, including the US.

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.

Energy-focused Riverstone's most recent fund, the Global Energy and Power Fund V, held a final close on $7.7bn in June 2013. The firm's portfolio includes UK shale and gas exploration company Cuadrilla, Fairfield Energy and Ensus.

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

Goldman Sachs International, JP Morgan Cazenove, Deutsche Bank AG and Morgan Stanley Securities acted as joint bookrunners.

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