US buyout firm KKR is said to be seeking $1.5bn for an energy fund that will focus on oil and gas investments.
The KKR Energy Income & Growth fund will be used by the US-based investor to form drilling partnerships, two people familiar with the matter told Bloomberg.
KKR is also heavily focused on the green sector with portfolio company SolarCity recently carrying out a high-profile IPO.
It is thought this new entity will, however, focus on fossil fuels as investors increasingly look to cash in on the expected shale gas boom.
The firm is said to be aiming for steady income and distributions for investors, and will invest in invest in minerals and royalties, as well as mezzanine debt, the newswire said.
In recent weeks the firm has also reshuffled its European team in the buildup to the upcoming launch of its first fund in the region since the financial crisis.
In February, KKR agreed to buy one of North America’s largest solar parks from Starwood Energy Group.
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