Spicewood Mineral Partners recently closed on its initial fund, which the Dallas-based firm said was  “substantially oversubscribed,” with total capital commitments exceeding its target of $200 million.

“We are thankful for the support and confidence of our partners in this first outside capital fund,” John Golden, partner and co-Founder of Spicewood, commented in a company release on June 6.

A U.S. mineral and energy investment firm, Spicewood has been acquiring royalties since 2016, according to the company’s website.

In the release on June 6, Spicewood announced the final closing of Spicewood Mineral Partners LP with $250 million of total capital commitments. The fund attracted backing from a diverse group of limited partners in the U.S., including endowments, foundations, fund of funds, RIAs and family offices, according to the release.

With the fund complete, along with two additional co-investment vehicles, Spicewood has raised approximately $400 million since December 2020. The company has already deployed roughly $270 million of the capital.

Spicewood’s investment strategy focuses on an in-depth technical understanding of the asset base, opportunistically buying off-market producing and non-producing minerals in core areas of the preeminent U.S. basins, according to the release.

“Our team continues to believe in the highly attractive risk-return profile of U.S. mineral assets, including Spicewood’s differentiated investment strategy, focusing on the acquisition of core assets at a value basis,” Golden added in the release.

The firm is currently focused on purchasing royalty interests in the Permian Basin, Eagle Ford Shale, Haynesville Shale and Appalachian region, its website said.

Comments