Energy Targets: TCRS PE program makes $50MM commitment to Denham
By Milt Capps
THE PRIVATE-EQUITY investment program of the Tennessee Consolidated Retirement System (TCRS) has made a $50 million commitment to Denham Capital Fund VI, an affiliate of Denham Capital Management, a multinational firm headquartered in Boston.
The announcement comes one week after TCRS announced a $25MM commitment for General Catalyst Group VI, as reported by VNC. Today's announcement brings to roughly $469MM TCRS's total commitments. Commitments are paid out and subsequently invested by fund managers during ensuing years.
According to its website, Denham invests globally in energy and commodities through three sectors: oil/gas, metals and Mining, and power and renewables. Its portfolio includes renewable-energy assets, additional to traditional oil, gas and commodities plays.
In 2007, Denham spun-out of SoWood Capital, which was predominantly a hedge fund; its sixth fund has a $2.5 billion target, larger than its $2Bn Vth and $1.2Bn IVth, according to reports online.
In November, Bloomberg reported that Denham had about $4.3Bn assets under management and that Fund VI had at that point secured about $1.6Bn in commitments.
Boston-based Tim Smith, who leads Denham's investor relations, is leading fundraising for Fund VI, said TCRS Private Equity Director Lamar Villere when asked this morning. Prior to joining Denham, Smith was director of IR for Boston Ventures. The Bloomberg report said that a Blackstone Group unit, Park Hill Group, was working with Denham on its raise.
In November, Denham announced committing $200MM to form an an African mining platform with Pangaea Exploration, noting at the time that it is reviewing projects focused on gold, platinum group, iron ore, coal and copper. The firm also said its interests are pan-African and cited among influencing factors "the emergence of Mozambique as a major global coal supplier, the diversification of Botswana’s mining industry, the development of iron ore opportunities in West Africa and gold mining consolidation opportunities in the same area."
Denham also recently announced partnering to form Ursa Research Group II, which, according to a temporary Ursa site today, will "focus on liquids rich unconventional plays as well as the acquisition of conventional oil and gas producing properties." URSA II management has said it is likely to complete an acquisition during 1H 2012, and has indicated it is considering both prospective and producing properties.
Cambridge Associates advised TCRS on the commitment. VNC