All in the name

When Riverstone Holdings began its life in 2000 it received a valuable boost from global fundraising machine The Carlyle Group, and their joint funds have since been tied immeasurably to the power of the Carlyle brand. But a recent name change to two of their energy funds signal the increasing independence and reputation of Riverstone among LPs.

Both firms have partnered over the years on several funds including the $685 million Carlyle/Riverstone Renewable Energy Infrastructure Fund I in 2006 and Carlyle/Riverstone Global Energy & Power Fund II, which closed on $1.1 billion in 2004. Such funds have made investments in buyouts, growth capital and joint ventures including the $860 million acquisition of Calgary-based Gibson Energy last December.

However, the relationship between the two firms has undergone a shift as Riverstone has taken a greater share in the economics of its new global energy fund and renewable energy fund. Instead of being marketed and branded as “Carlyle/Riverstone”, they will now lead off with Riverstone’s name, including the Riverstone/Carlyle Global Energy & Power Fund IV which has already reached its original $6 billion target and extended fundraising for another few months.

The name change came as New York-based Riverstone also expanded its team with the appointment of former Goldman Sachs general partner and ex-US diplomat Peter Coneway as a Houston-based managing director with a focus on sourcing, structuring and executing energy investments. The firm, which has approximately $17 billion under management and has committed more than $11 billion to oil, power and renewable companies, is especially poised to grow as energy allocations continue to rise within institutional portfolios.

Riverstone’s focus on renewable energy also comes as the sector has become a bigger focus for many LPs, with ATP, one of the largest pension funds in Europe, recently committing $400 million to a vehicle managed by New Jersey-based firm Hudson Clean Energy Partners, while CalPERS has invested $200 million to Khosla Ventures Expansion Fund.