Kimmeridge Pulls in $1B for Oil and Gas Fund

Energy-focused alternative assets manager Kimmeridge has raised more than $1 billion for its sixth flagship fund, Kimmeridge Fund VI LP, to acquire and develop oil and gas assets.

The vehicle is one of the few North American oil and gas funds closed on more than $1 billion over the past five years and comes in 25% larger than the firm’s fifth fund from 2019. It is also the largest fund raised by the New York-based company since its establishment in 2012.

Kimmeridge’s fundraise is notable given the huge rise in institutional LP appetite for funds which help the transition to a low-carbon economy.

Research provider Preqin reports that North American private-equity firms raised $2.37 billion across five oil and gas-focused funds in the first half of 2023. This amount is only a tenth of what was raised in the same period last year. Furthermore, no fund has closed with more than $1 billion so far this year, whereas five funds achieved this milestone last year.

Amid the rising numbers of climate-focused funds, energy transition and sustainability vehicles, Kimmeridge said the fund will focus on “unconventional assets across top-producing basins in North America.”

“While we are gratified to have played an important role in spurring a new E&P business model focused on profitability, shareholder alignment and environmentally conscious production, many [oil and gas] assets continue to trade at depressed valuations and lack relevance among skeptical investors,” said Ben Dell, founder and Managing Partner of Kimmeridge.

Kimmeridge has raised more than $5 billion across 10 funds since 2012, including its Carbon Solutions strategy to accelerate the energy transition to net zero.