Energy Spectrum Capital, which focuses on energy infrastructure, announced the final closing of its eighth venture capital fund on May 8 with total capital commitments of $969 million.

The Dallas-based venture capital firm said its eighth fund, Energy Spectrum Partners VIII LP, will continue to invest primarily in midstream assets within the energy industry. Midstream assets include oil and natural gas gathering and transportation systems, processing and treating plants and storage facilities.

“In the current environment, we believe we are well-positioned to identify high-quality midstream assets and take advantage of opportunities amid the significant price dislocations in the current market,” Thomas O. Whitener Jr., president and founding partner of Energy Spectrum Capital, said in a statement on May 8.

Since its inception in 1995, Energy Spectrum has raised more than $4.5 billion of equity capital and has sponsored 63 portfolio companies to date. The firm focuses on making direct investments in lower middle market companies that acquire, develop and operate midstream energy assets in the U.S. and Canada.

The firm’s latest fund has so far committed to four new portfolio companies and has a fifth in documentation. Three of the four existing companies are led by management teams with whom Energy Spectrum has successfully partnered previously.

Energy Spectrum said in its company release that a diverse mix of 82 limited partners committed to the fund including private and public pension funds, insurance companies, university endowments, foundations and family offices.

Baker Botts LLP served as legal counsel for the fund.

Comments