Prequin finds a natural fit in private equity

Investors have put $9.7 billion into six private equity natural resources funds in the first quarter of 2013, according to alternative assets information provider Preqin.

Preqin said this success follows a good 2012 for natural resources funds when 22 funds secured $22.5 billion in assets, similar to the peak levels of 2006 and 2009. It added that the largest natural resources fund to close in the first quarter of this year was the EnCap Energy Capital Fund IX, which held a final close in February of $5 billion. North American-focused natural resources funds accounted for 77% of aggregate capital raised in 2012, and no capital was raised by funds focused solely on Europe.

Preqin senior manager, Helen Kenyon, said: “2012 was a bumper year for natural resources private equity fundraising, and 2013 so far looks to continue this positive trend. Although established natural resources fund managers are likely to continue to attract significant amounts of capital, competition within the industry may intensify as a result of buyout fund managers entering this space, along with first-time fund managers securing notable amounts of capital.”