Energy & Minerals Group could up Fund III hard cap to $4bn


nuclear-cooling-towers-powerEnergy-focused private equity firm Energy & Minerals Group could raise the hard cap of its latest fund to $4bn after making short work of chasing down its original target.

The firm was thought to be planning a $3.5bn hard cap final close for its third fund in the second quarter of this year, but could now go higher depending on the size of its next two closes according to Dow Jones, which said it had seen an investment memorandum.

It added that such a move would require the consent of LP which had already committed to the vehicle.

The new fund could end up almost twice the size of EMG’s second vehicle, which was closed with $2.2bn of commitments in 2012.

The firm invests between $150m and $400m in companies in the energy and minerals sector.

Last year EMG teamed up with NYSE-listed natural gas developer MarkWest Energy Partners to launch a development joint venture, which is focused on the development of midstream infrastructure on behalf of natural gas producers operating throughout the liquids-rich Utica Shale formation in Ohio.

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