Natural Resources in the US Alternative Assets

The Facts Natural Resources in the US alternative assets. intelligent data.

Natural Resources in the US

Using data from Preqin’s Natural Resources Online, this factsheet provides a comprehensive overview of the natural resources industry in the US, including fundraising, fund managers and investors in the country.

Key Facts

1,007

$151bn 30% $6.5bn Number of US-based natural Aggregate capital raised by Texas-based natural resources Size of EnCap Energy Capital resources investors profiled on US-focused unlisted natural fund managers have raised Fund, the largest US-focused Natural Resources Online. resources funds since 2006. the largest proportion of natural resources fund closed capital since 2006. since 2006.

Headquarters of US-Based Natural Resources Fund Managers

WWAA MMNN 5 MMTT 4 NNHH 1 OORR 6 5 NNYY MMAA 6677 1122 IIAA PPAA NNJJ CCTT NNEE 1 OOHH 1177 8 1199 2 IILL IINN UUTT 3 CCOO 8 2 VVAA CCAA 1 KKSS 1133 MMOO KKYY 3 3377 2 2 2 NNCC MMDD TTNN 6 5 AAZZ OOKK 3 DDCC 2 1155 5 MMSS AALL GGAA 1 2 7 TTXX LLAA 111616 3 FFLL HHII 5 1

Source: Preqin Natural Resources Online

The Facts Natural Resources in the US alternative assets. intelligent data.

Fig. 1: Annual US-Focused Natural Resources Fundraising, Fig. 2: US-Focused Natural Resources Fundraising by 2006 - 2016 YTD (As at 20 April 2016) Primary Strategy, 2014 - 2016 YTD (As at 20 April 2016)

35 33 60 50 30 50 27 27 25 41.8 24 24 25 23 40 21.0 No. of Funds 20.5 Closed 20 17.5 18 18 30 16.5 16.9 15.3 14.6 15 14.3 Aggregate Capital 20 10.4 Raised ($bn) 10 7 10 5 4 5 4 0.6 1.2 1 0.1 1.9 2.1 0 Agriculture/ Energy Timberland Water 0 Farmland 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD Primary Strategy Year of Final Close No. of Funds Closed Aggregate Capital Raised ($bn) Source: Preqin Natural Resources Online Source: Preqin Natural Resources Online Fig. 3: Five Largest US-Focused Unlisted Natural Resources Funds* Closed, 2014 - 2016 YTD (As at 20 April 2016)

Final Fund Size Fund Firm Headquarters Primary Strategy Close Date (mn) EnCap Energy Capital Fund X EnCap Investments Houston, TX Energy Apr-15 6,500 USD NGP Energy Capital NGP Natural Resources XI Irving, TX Energy Jan-15 5,325 USD Management Energy Capital Partners III Energy Capital Partners Short Hills, NJ Energy Mar-14 5,050 USD EnCap Flatrock Midsteam Fund III EnCap Flatrock Midstream San Antonio, TX Energy Apr-14 3,000 USD EnerVest Energy Institutional Fund XIV EnerVest Houston, TX Energy Nov-15 2,300 USD

Source: Preqin Natural Resources Online

Fig. 4: Five Largest US-Based Natural Resources Fund Managers by Aggregate Capital Raised for Unlisted Natural Resources Funds* in the Last 10 Years

Firm Headquarters Strategy Preference Total Funds Raised in Last 10 Years ($bn) Riverstone Holdings New York, NY Energy 25.7 First Reserve Corporation Greenwich, CT Energy 23.8 EnCap Investments Houston, TX Energy 19.5 Global Infrastructure Partners New York, NY Energy, Water 18.0 Madison Dearborn Partners Chicago, IL Energy, Metals & Mining 14.1

Source: Preqin Natural Resources Online *Inclusive of infrastructure funds with a signiﬁ cant focus on natural resources. Fig. 6: US-Based Natural Resources Investors by Assets Fig. 5: US-Based Natural Resources Investors by Type under Management

50% Foundation 46% 45% 3% 3% 4% Endowment Plan 40% 5% 24% 35% Public Pension Fund 5% 30% 27% Private Sector Pension Fund 25% Wealth Manager 20% 15% Family Office 15% 13% Proportion of Investors 10% 8% 22% Insurance Company 6% 5% Asset Manager 19% 0% Less than $1-4.9bn $5-9.9bn $10-49.9bn $50bn or Other $1bn More Assets under Management Source: Preqin Natural Resources Online Source: Preqin Natural Resources Online

The Facts Natural Resources in the US alternative assets. intelligent data.

Fig. 7: US-Based Natural Resources Investors by Source of Fig. 8: Preferred Route to Market of US-Based Natural Allocation Resources Investors

100% Separate Allocation 92% 90%

15% 80% 20% General Alternatives Allocation 70% 2% Part of Infrastructure 60% Allocation 50% 8% Part of Private Equity Allocation 40%

5% Part of Real Assets 30%

29% Proportion of Investors 22% Allocation 20% 10% Part of Real Estate 10% 21% Allocation 0% Other Allocation Unlisted Listed Direct Route to Market Source: Preqin Natural Resources Online Source: Preqin Natural Resources Online

Fig. 9: Geographic Preferences of US-Based Natural Fig. 10: Strategy Preferences of US-Based Natural Resources Investors Resources Investors

100% 100% 92% 90% 90% 90% 80% 80% 70% 70% 60% 50% 46% 60% 40% 35% 50% 30% 42% 30% 24% 40% 31%

Proportion of Investors 20% 30% 24%

10% 7% Proportion of Investors 3% 20% 0% 12% 10%

Asia 0% OECD Global North Europe Agriculture/ Energy Metals Timberland Water America Markets Emerging

Australasia Farmland & Mining Geographic Preference Strategy Preference Source: Preqin Natural Resources Online Source: Preqin Natural Resources Online

Fig. 11: Sample of US-Based Investors Targeting Unlisted Natural Resources Funds in the Next 12 Months

Investor Type Headquarters Investment Plans in the Next 12 Months Sacramento County Expects to commit $100-150mn across direct investments, Public Pension Fund Sacramento, CA Employees' Retirement System listed natural resources and unlisted funds. Texas Tech University System Will invest $10mn in one North America- or Europe-focused Endowment Plan Lubbock, TX Endowment energy-, mining- or metals-focused fund. Michigan Laborers' Pension Private Sector Pension Will commit $5-10mn to unlisted natural resources funds over Lansing, MI Fund Fund the next 12 months on an opportunistic basis.

Source: Preqin Natural Resources Online

Looking for more information on US-focused fundraising?

Preqin’s Natural Resources Online contains detailed information on all aspects of the US fundraising market, with proﬁ les for over 370 US-focused unlisted natural resources funds closed historically and more than 47 in market.

With global coverage across all strategies, including agriculture/farmland, energy (including oil & gas), metals & mining, timberland and water, Natural Resources Online is a vital source of intelligence for fund managers, investors, service providers and other professionals seeking to keep up-to-date with the latest developments in the industry.

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