06/16/2010

White Deer Pushes Past Fund-Raising Goal

White Deer Energy will exceed the equity goal for its debut fund.

The firm plans to hold the oil-and-gas focused buyout vehicle's final close on June 29, and already has enough commitments lined up for a $780 million haul. With additional investors looking at the offering, it could bring in more than $800 million.

White Deer was aiming for $750 million. The Houston firm set that goal in August 2008, and stuck with it even through the worst of the global financial crisis.

The timeline for the fund's final close, meanwhile, has been more of a moving target. White Deer and placement agent Credit Suisse had been aiming to wrap up marketing efforts during the first three months of this year after closing on an estimated $630 million by the end of 2009, but opted to campaign for more capital instead. A first close came in July 2009 with $302 million.

White Deer's capital-raising abilities largely reflect the strong track records of founders Tom Edelman and Ben Guill. Guill was president of First Reserve until 2007, while Edelman managed a series of energy companies, including Patina Oil & Gas.

Backers were also encouraged to see Edelman and Guill chip in $100 million of the new fund's capital, placing them among the vehicle's largest investors. TIAA-CREF is contributing another $100 million. The targeted holdings for White Deer's fund include stakes in companies engaged in the exploration or production of oil and natural gas.