Riverstone Holdings
Encyclopedia
Riverstone Holdings is a private equity
firm focused on leveraged buyout
and growth capital
investments in the energy
and power
sectors. The firm focuses on oil and gas exploration, midstream pipeline, electric generation, energy and power services as well as energy and power technology. The firm is a leading investor in renewable energy
infrastructure and technology.
Riverstone operates primarily through a joint venture with the Carlyle Group
. The firm manages a family of six funds through its joint venture with Carlyle and has raised approximately $17 billion since inception.
The firm, which is based in New York City
, was founded in 2000. With offices in New York, London and Houston, Riverstone has committed approximately $15.9 billion to 78 investments in North America, South America, Europe and Asia.
Global Energy & Power Group in the mid 1980s.
Partners at Riverstone include John Browne, Baron Browne of Madingley
, who was previously the Chief Executive Officer of BP Plc from December 31, 1998 through May 01, 2007.
Riverstone and Carlyle closed on their first fund with $222 million of commitments in 2001. In June 2004, the firms completed fundraising for Carlyle/Riverstone Global Energy & Power Fund II, with $1.1 billion of investor commitments, almost five times the size of the first fund. In 2006, Riverstone and Carlyle raised a pair of funds, including the third in its series of main funds, Carlyle/Riverstone Global Energy and Power III, which raised $3.8 billion of capital. The two firms also raised their first renewable energy focused fund, Carlyle/Riverstone Renewable Energy Infrastructure Fund I, with $685 Million.
Also in 2006, Riverstone was a member of a consortium of private equity firms including Goldman Sachs Capital Partners
and Carlyle Group
that completed the $27.5 billion (including assumed debt) acquisition of Kinder Morgan
, one of the largest pipeline operators in the US. The buyout was backed by Richard Kinder
, the company's co-founder and a former president of Enron
who was ousted after a dispute with Enron’s founder, Kenneth L. Lay.
In 2008, Riverstone and Carlyle raised $6 billion for their fourth main energy fund, Riverstone/Carlyle Global Power & Energy Fund IV, exceeding the $3.8 billion the firms had raised in 2006. Additionally in 2008, the firms raised a $3.4 billion Riverstone/Carlyle Renewable Energy Infrastructure Fund II as a successor to the $685 million fund raised in 2006 to focus on renewable energy investments. With the combined 2008 fund raises, Riverstone stands as the largest energy-dedicated private equity fund.
as part of a larger probe of the New York State Common Retirement System. Cuomo's investigation scrutinized payments made by Riverstone to a number of placement agents
that had political connections in the state. Cuomo alleged that these payments were directly in relation to approximately $530 million in commitments from the New York State pension fund between 2003 and 2005 that were made to various private equity fund
s raised by the Carlyle/Riverstone joint venture. In June 2009, Riverstone agreed on to pay $30 million to resolve its role in the Cuomo investigation.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm focused on leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
and growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
investments in the energy
Energy industry
The energy industry is the totality of all of the industries involved in the production and sale of energy, including fuel extraction, manufacturing, refining and distribution...
and power
Electrical power industry
The electric power industry provides the production and delivery of electric energy, often known as power, or electricity, in sufficient quantities to areas that need electricity through a grid connection. The grid distributes electrical energy to customers...
sectors. The firm focuses on oil and gas exploration, midstream pipeline, electric generation, energy and power services as well as energy and power technology. The firm is a leading investor in renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
infrastructure and technology.
Riverstone operates primarily through a joint venture with the Carlyle Group
Carlyle Group
The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington, D.C. The Carlyle Group operates in four business areas: corporate private equity, real assets, market strategies and fund-of-funds, through its AlpInvest subsidiary...
. The firm manages a family of six funds through its joint venture with Carlyle and has raised approximately $17 billion since inception.
The firm, which is based in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, was founded in 2000. With offices in New York, London and Houston, Riverstone has committed approximately $15.9 billion to 78 investments in North America, South America, Europe and Asia.
History
Riverstone was founded by Pierre F. Lapeyre, Jr. and David M. Leuschen, who had been instrumental in the formation of the Goldman SachsGoldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
Global Energy & Power Group in the mid 1980s.
Partners at Riverstone include John Browne, Baron Browne of Madingley
John Browne, Baron Browne of Madingley
Edmund John Philip Browne, Baron Browne of Madingley, FRS FREng is President of the Royal Academy of Engineering and was group Chief Executive of BP until his resignation on 1 May 2007...
, who was previously the Chief Executive Officer of BP Plc from December 31, 1998 through May 01, 2007.
Riverstone and Carlyle closed on their first fund with $222 million of commitments in 2001. In June 2004, the firms completed fundraising for Carlyle/Riverstone Global Energy & Power Fund II, with $1.1 billion of investor commitments, almost five times the size of the first fund. In 2006, Riverstone and Carlyle raised a pair of funds, including the third in its series of main funds, Carlyle/Riverstone Global Energy and Power III, which raised $3.8 billion of capital. The two firms also raised their first renewable energy focused fund, Carlyle/Riverstone Renewable Energy Infrastructure Fund I, with $685 Million.
Also in 2006, Riverstone was a member of a consortium of private equity firms including Goldman Sachs Capital Partners
Goldman Sachs Capital Partners
Goldman Sachs Capital Partners is the private equity arm of Goldman Sachs, focused on leveraged buyout and growth capital investments globally....
and Carlyle Group
Carlyle Group
The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington, D.C. The Carlyle Group operates in four business areas: corporate private equity, real assets, market strategies and fund-of-funds, through its AlpInvest subsidiary...
that completed the $27.5 billion (including assumed debt) acquisition of Kinder Morgan
Kinder Morgan
Kinder Morgan, Inc. is an American energy company. It is also, through a subsidiary, the general partner of and owner of many of the interests in Kinder Morgan Energy Partners, a publicly traded pipeline and terminal limited partnership....
, one of the largest pipeline operators in the US. The buyout was backed by Richard Kinder
Richard Kinder
Richard Kinder is the CEO and Chairman of the Board of Kinder Morgan Energy Partners, an energy and pipeline corporation.-Biography:...
, the company's co-founder and a former president of Enron
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
who was ousted after a dispute with Enron’s founder, Kenneth L. Lay.
In 2008, Riverstone and Carlyle raised $6 billion for their fourth main energy fund, Riverstone/Carlyle Global Power & Energy Fund IV, exceeding the $3.8 billion the firms had raised in 2006. Additionally in 2008, the firms raised a $3.4 billion Riverstone/Carlyle Renewable Energy Infrastructure Fund II as a successor to the $685 million fund raised in 2006 to focus on renewable energy investments. With the combined 2008 fund raises, Riverstone stands as the largest energy-dedicated private equity fund.
New York State investigation
In 2009, Riverstone and The Carlyle Group came under investigation by New York State Attorney General Andrew CuomoAndrew Cuomo
Andrew Mark Cuomo is the 56th and current Governor of New York, having assumed office on January 1, 2011. A member of the Democratic Party, he was the 64th New York State Attorney General, and was the 11th United States Secretary of Housing and Urban Development...
as part of a larger probe of the New York State Common Retirement System. Cuomo's investigation scrutinized payments made by Riverstone to a number of placement agents
Private placement agent
Private placement agent or placement agent is a firm assisting either funds managers in the alternative asset class or entrepreneurs/private companies Private placement agent or placement agent is a firm assisting either funds managers in the alternative asset class (e.g. private equity ,...
that had political connections in the state. Cuomo alleged that these payments were directly in relation to approximately $530 million in commitments from the New York State pension fund between 2003 and 2005 that were made to various private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
s raised by the Carlyle/Riverstone joint venture. In June 2009, Riverstone agreed on to pay $30 million to resolve its role in the Cuomo investigation.
Investments
Riverstone's investment portfolio includes the following:External links
- Riverstone Holdings (company website)