EnCap Flatrock Midstream (EFM), a private equity firm focused on the energy industry’s rapidly growing midstream sector, reports the final closing of EnCap Flatrock Midstream Fund III LP (EFM III). Substantially oversubscribed, the fund exceeded its $2.25 billion target and reached its $3 billion hard cap within four months.
EFM III received strong support from existing limited partners of its predecessor funds and also attracted many new investors, including well-known corporate and public pension plans, family offices, insurance companies, and university endowments and foundations.
EFM III will follow the same strategy as its successful predecessors EnCap Flatrock Midstream Fund I LP and EnCap Flatrock Midstream Fund II LP by investing in independent, startup midstream companies led by experienced management teams. EFM II is a 2012 vintage fund that closed at its hard cap of $1.75 billion and has made equity commitments to 10 portfolio companies. Since the firm’s first fund closed in 2010, EnCap Flatrock has made equity commitments to a total of 16 portfolio companies and has had four realization events totaling nearly $4 billion.
Thompson & Knight LLP served as legal counsel to EnCap Flatrock. Partner Michael K. Pierce and Sarah N. Furbee led the legal team from Thompson & Knight’s Houston office.