EnCap Investments announced that it has closed EnCap Energy Capital Fund XII, LP with $5.25 billion in capital commitments, exceeding the original goal and reaching the hard cap. The company has raised $6.4 billion related to Fund XII, including $1.2 billion in previous co-investments.
EnCap has a long history of providing growth capital to proven management teams focused on the upstream sector of the North American oil and gas industry. Additionally, Fund XII currently includes investments in 12 portfolio companies, 10 of which are managed by teams the firm successfully partnered with in previous funds.
In addition to Fund XII, EnCap recently completed financing for two other investment areas: EnCap Energy Transition Fund II and EnCap Flatrock Midstream Fund V. These three EnCap platforms achieved final closings this year, raising a combined total of approximately $9 billion in funding.
Leveraging this capital and partnering with an experienced management team, EnCap will deliver attractive risk-adjusted returns to investors. EnCap also plays a key role in meeting the world’s energy needs by providing reliable, responsible and affordable energy sources to support greater economic opportunity and progress around the world. I’m focusing on that.
Vinson & Elkins served as legal advisor to EnCap in the creation of Fund XII.
Main quotation:
“We are pleased to announce the closing of Fund XII, which has significantly exceeded our initial goals and will ultimately reach our hard cap. We are very grateful to our long-term investors who have partnered with us on Fund XII. We are also excited to add a number of high-quality new investors as partners. We are very excited about this, with approximately 40% of our capital commitments coming from new relationships with both institutional investors and large family offices.”
-Managing Partner Doug Swanson
“We are grateful for the continued trust our limited partners have shown in us by entrusting us with the management of their capital. We are also excited to do business with some of the energy industry’s brightest entrepreneurs. The Fund XII financing was supported by the strong performance of EnCap’s existing portfolio, which has returned more than $22 billion in distributions to EnCap investors since the beginning of 2021. We remain very optimistic about the North American upstream oil and gas investment environment and look forward to continuing to deploy capital and build on our successful track record of delivering value to our partners and portfolio companies. ”
-Managing Partner Jason DeLorenzo
