First Reserve Corp., a U.S.-based private-equity firm specializing in the energy industry, has closed its latest global fund with total commitments of $7.8 billion. The fund, which surpasses the $4.8 billion raised earlier this year by Carlyle Group and its energy-investment affiliate Riverstone Holdings LLC, is the largest ever put together by First Reserve and said to be the largest to focus exclusively on the global energy industry.

With offices in Great Britain, Greenwich, CT and Houston, First Reserve said it plans to focus its latest fund on energy service companies. However, management said the investments will “span all stages of the energy-life cycle.” First Reserve’s previous energy fund in 2004 raised $2.4 billion, and it is expected to be fully committed by the fourth quarter. First Energy’s notable transactions include investments in Pacific Energy, Weatherford International, National Oilwell, Foundation Coal, Alpha Natural Resources, Pride International, Superior Energy Services, Caledonia Oil and Gas and Chicago Bridge and Iron.

“We encountered strong investor interest allowing us to conclude our fundraising in three months on a larger fund than originally anticipated,” said CEO Bill Macaulay. “We are very grateful to our investors for working hard to meet our closing deadlines enabling us to quickly get back to focusing all our efforts on investing. It is clear that our limited partners continue to value our specialized knowledge and our strong and consistent track record of finding rewarding investment opportunities in the global energy markets.”

President Ben Guill said most of the fund will focus on companies that provide equipment and services to find oil and natural gas. Another 20-30% will be directed toward exploration and production companies. A small percentage of the funds also will go into alternative fuel investments.

“We look for companies with growth opportunities with strong management teams, with geographical or product needs that have been tested over prior cycles and have the opportunity for growth,” said Guill.

First Reserve has 65 full-time employees, with 40 investment professionals. Nine are based in Houston, four are based in London, England and the rest are located in Greenwich, CT.

Earlier this year, Carlyle Group and its energy-investment affiliate Riverstone Holdings LLC raised more than $3.8 billion for their Global Energy & Power Fund and nearly $700 million for a renewable energy fund. The fund purchased some EnCana Corp. assets earlier this year (see NGI, May 22), and in June, it bought a stake in a power project in Lake County, CA (see Power Market Today, June 9).

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