Riverstone Holdings is reportedly aiming to raise $1 billion for a new fund devoted to debt instruments of issuers in the downtrodden energy sector.
Riverstone first publicized the new fund in January following steep declines in energy-related credit and equity prices.
According to media reports, the fund is considering charging carried interest of 15% along with management fees on committed, instead of invested, capital. It would also have a two-year investment period, a short horizon that suggests Riverstone believes the opportunity in energy credit to be relatively brief one.
Terms for the fund have not been finalized. When launched, Riverstone’s energy credit team, a group of energy levered finance professionals hired in July 2014, will manage the fund.
Riverstone is not alone in trying to take advantage of the selloff in the energy sector, with energy credit funds in the works at Goldman Sachs, Apollo Global Management, and GSO Capital Partners, among others.