EnCap Investments is seeking to raise $4bn (€3.7bn) for its latest North American energy infrastructure fund, according to an investor.
The Orange County Employees Retirement System (OCERS) disclosed in a board meeting document that it has approved a $75m commitment to EnCap Energy Capital Fund XII.
The fund will invest in traditional upstream opportunities and acquire mineral rights and royalty streams by providing growth equity solutions to management teams focused on oil and gas-producing regions.
Fund XII targets a gross internal rate of return of at least 25% and a 2.0x gross return on invested capital.
The commitment from OCERS represents the pension fund’s second real assets commitment in 2023.
Back in May, OCERS issued a $50m commitment to EnCap Flatrock Midstream Fund V, an EnCap Investments-managed fund seeking to raise $3bn to invest in oil and gas infrastructure in the US.
As previously reported, OCERS intends to invest up to $400m in real assets in 2023 by placing capital into three to infrastructure or energy-related funds.
To read the latest edition of the latest IPE Real Assets magazine click here.
