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 an 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. [1 ]
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. [2 ] History [edit ]
Riverstone was founded by Pierre F. Lapeyre, Jr.
and David M. Leuschen, who had been instrumental in the formation of the [3 ] Goldman Sachs Global Energy & Power Group in the mid 1980s. [4 ]
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 1, 2007. [5 ] [6 ]
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. [8 ]
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.
[9 ] With the combined 2008 fund raises, Riverstone stands as the largest energy-dedicated private equity fund. [10 ] [11 ]
In September 2013, Riverstone Holdings announced plans to list a new energy vehicle on the LSE in an initial public offering that could raise up to 1.5 billion pounds. The new company,
Riverstone Energy Limited (REL), said it had already secured 550 million pounds worth of commitments. It plans to invest in energy companies and assets worldwide, focusing on exploration and production of oil and gas, and their storage and transportation. [12 ] New York State investigation [edit ]
In 2009, Riverstone and
The Carlyle Group came under investigation by New York State Attorney General Andrew Cuomo 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 funds raised by the Carlyle/Riverstone joint venture. In June 2009, Riverstone agreed to pay $30 million to resolve its role in the Cuomo investigation. [13 ] [14 ] [15 ] Investments [edit ]
Riverstone's investment portfolio includes the following:
4Gas Holding B.V. ( Rotterdam, The Netherlands); Acquired April 2005 [16 ] AES Solar Energy Ltd. ( Alexandria, Virginia); Acquired March 2008 [17 ] Amaizeingly Green Products L.P. ( Collingwood, Ontario, Canada); Acquired July 2006 [18 ] Barra Energia do Brasil Petróleo e Gás ( Rio de Janeiro, Brazil); Acquired May 2011 [19 ] Belden & Blake Corporation ( Canton, Ohio); Acquired July 2004 [20 ] Bottle Rock Power ( Cobb, California); Acquired August 2006 [21 ] Buckeye Partners, L.P. ( Emmaus, Pennsylvania); Acquired May 2004 [22 ] C/R Energy Jade, LLC ( Austin, Texas); Acquired July 2006 [23 ] CanEra Resources Inc. ( Calgary, Alberta, Canada); AcquiredNovember 2008 [24 ] CanEra Resources Inc. II (Calgary, Alberta, Canada); Acquired December 2010 [25 ] CDM MAX ( Houston, Texas); Acquired August 2005 [26 ] CDM Resource Management (Houston, Texas); Acquired May 2003 [27 ] CNAA ( Ribeirao Preto, Brazil);Acquired January 2007 [28 ] Coastal Carolina Clean Power ( Kenansville, North Carolina); Acquired June 2006 [29 ] Cobalt International Energy (Houston, Texas); Acquired November 2005 [30 ] CODA Holdings ( Santa Monica, California); Acquired December 2010 [31 ] Cuadrilla Resources Holdings Ltd. ( Lichfield, United Kingdom); Acquired February 2010 [32 ] Davenport Newberry Holdings, LLC ( Stamford, Connecticut); Acquired March 2008 [33 ] Dresser Industries ( Addison, Texas); Acquired May 2007 [34 ] Dynamic Offshore Resources ( Lafayette, Louisiana); Acquired March 2007 [35 ] Dynamic Offshore Resources, LLC (Houston, Texas); Acquired January 2008 [36 ] Eagle Energy Company of Oklahoma, LLC ( Tulsa, Oklahoma); Acquired December 2009 [37 ] Emerald Clean Power LLC ( Elizabethtown, North Carolina); Acquired October 2009 [38 ] Enduro Resource Partners LLC ( Fort Worth, Texas); Acquired April 2010 [39 ] Ensus Ethanol ( Teesside, United Kingdom); Acquired March 2007 [40 ] Enviva LP ( Bethesda, Maryland); Acquired March 2010 [41 ] Foresight Reserves ( St. Louis, Missouri); Acquired September 2007 [42 ] Frontier Drilling ASA ( Bergen, Norway); Acquired July 2001 [43 ] Gibson Energy (Calgary, Alberta, Canada); Acquired December 2008 [44 ] Green Earth Fuels (Houston, Texas); Acquired July 2006 [45 ] Hestya Energy ( Amsterdam, The Netherlands); Acquired December 2010 [46 ] HongHua Co. ( Chengdu, China); Acquired December 2006 [47 ] Hudson Products Corporation (Houston, Texas); Acquired August 2008 [48 ] ILX Holdings (Houston, Texas); Acquired September 2010 [49 ] InTANK ( Laurel, Maryland); Acquired November 2001 [50 ] International Logging (Houston, Texas); Acquired March 2006 [51 ] Kinder Morgan (Houston, Texas); Acquired May 2007 [52 ] Kramer Junction (Desert, California); Acquired January 2005 [53 ] Legend Natural Gas I, II & III (Houston, Texas); Acquired September 2001 [54 ] Legend Production Holdings LLC (Houston, Texas); Acquired October 2004 [55 ] Liberty Resources LLC ( Denver, Colorado); Acquired September 2010 [56 ] Magellan Midstream Partners (Tulsa, Oklahoma); Acquired June 2003 [57 ] Mariner Energy (Houston, Texas); Acquired March 2004 [58 ] Mistral Energy Inc. (Calgary, Alberta, Canada); Acquired July 2010 [59 ] Niska Gas Storage (Calgary, Alberta, Canada); Acquired May 2006 [60 ] Northern Blizzard Resources Inc. (Calgary, Alberta, Canada); Acquired July 2010 [61 ] Patagonia BioEnergia S.A. ( Buenos Aires, Argentina); Acquired May 2008 [62 ] Pattern Energy Group LP ( San Francisco, California); Acquired June 2009 [63 ] Moreno Group Holdings Morris Energy Group Nanosolar Newberry Geothermal Holdings Niska Gas Storage (Calgary, Alberta, Canada); Acquired September May 2006 [64 ] Northern Blizzard Resources Inc. (Calgary, Alberta, Canada); Acquired July 2010 [65 ] Patagonia BioEnergia S.A. ( Buenos Aires, Argentina); Acquired May 2008 [66 ] Pattern Energy Group (San Francisco, California); Acquired June 2009 [67 ] Permian Tank ( Odessa, Texas); Acquired December 2007 [68 ] Petroplus Holdings AG ( Zug, Switzerland); Acquired April 2005 [69 ] Phoenix Exploration Company (Houston, Texas); Acquired April 2006 [70 ] Quintana Shipping Ltd. ( Athens, Greece); Acquired March 2011 [71 ] Quorum Business Solutions, Inc. (Houston, Texas); Acquired July 2010 [72 ] R/C Sugarkane, LLC (Houston, Texas); Acquired March 2010 [73 ] Raven Power (Baltimore, Maryland); Acquired November 2012 [74 ] Red Technology Alliance (Houston, Texas); Acquired July 2006 [75 ] ReEnergy Holdings ( Latham, New York); Acquired August 2008 [76 ] Sapphire Power Holdings (Austin, Texas); Acquired October 2011 [77 ] Seabulk Intl ( Ft. Lauderdale, Florida); Acquired September 2002 [78 ] Seajacks International ( Great Yarmouth, United Kingdom); Acquired January 2010 [79 ] SemGroup (Tulsa, Oklahoma); Acquired January 2005 [80 ] Shelter Bay Energy (Calgary, Alberta, Canada); Acquired March 2008 [81 ] Stallion Oilfield Services; Acquired January 2005 [82 ] [83 ] Targe Energy ( Pittsburgh, Pennsylvania); Acquired May 2006 [84 ] ThermaSource LLC ( Santa Rosa, California); Acquired February 2007 [85 ] Three Rivers Operating Company LLC (Austin, Texas); Acquired April 2010 [86 ] Titan Operating (Fort Worth, Texas); Acquired August 2008 [87 ] Titan Specialties ( Pampa, Texas); Acquired March 2007 [88 ] Topaz Power Group, LLC (Austin, Texas); Acquired July 2004 [89 ] Turbine Air Systems, Ltd. (Houston, Texas); Acquired August 2007 [90 ] USA Compression (Austin / Dallas, Texas); Acquired December 2010 [91 ] Vantage Energy, LLC ( Denver, Colorado); Acquired December 2006 [92 ] Velocita Energy Developments Ltd ( London, United Kingdom); Acquired May 2011 [93 ] References [edit ] ^ USA Compression LP Form S-1. June 09, 2011 ^ USA Compression LP Form S-1. June 09, 2011 ^ P. F. Lapeyre Jr. Laurie Lee Hodges. New York Times, November 19, 1989 ^ Did Goldman Goose Oil? Forbes, April 13, 2009 ^ Lord Browne returns to oil sector August 25, 2007 ^ Lord John Browne ^ The Carlyle Group and Riverstone Holdings Raise $4.5 Billion for Two New Energy Funds. April 5, 2006 ^ MOUAWAD, JAD. " Kinder Morgan Agrees to an Improved Buyout Offer Led by Its Chairman." New York Times, August 29, 2006. ^ Riverstone Hits Target For One Fund, Nearing Close On Another. Reuters Buyouts, April 3, 2009 ^ Riverstone/Carlyle Renewable Energy II. ^ Carlyle in talks with energy buyout shops New York Times, July 07, 2011 ^ http://www.reuters.com/article/2013/09/24/us-riverstone-ipo-idUSBRE98N0FQ20130924 ^ Go-Between Tied Funds to Carlyle. New York Times, May 14, 2009 ^ Equity Firm Pays $30 Million in Pension Fund Case. New York Times, June 11, 2009 ^ 4 Firms Agree to Settlement in New York Pension Fund. New York Times, September 17, 2009 ^ 4Gas Holding B.V.- Retrieved 2011-12-31 ^ Riverstone Partners for $1 Billion on Solar. Red Herring, March 26, 2008 ^ Amaizeingly Green Products- Retrieved 2011-12-31 ^ Barra Energia do Brasil Petróleo e Gás- Retrieved 2011-12-31 ^ Belden & Blake Corporation- Retrieved 2011-12-31 ^ Bottle Rock Power - Retrieved 2011-12-31 ^ Buckeye Partners- Retrieved 2011-12-31 ^ C/R Energy Jade, LLC- Retrieved 2011-12-31 ^ CanEra Resources Inc.- Retrieved 2011-12-31 ^ CanEra Resources Inc. II- Retrieved 2011-12-31 ^ CDM MAX - Retrieved 2011-12-31 ^ CDM Resource Management- Retrieved 2011-12-31 ^ CNAA- Retrieved 2011-12-31 ^ Coastal Carolina Clean Power- Retrieved 2011-12-31 ^ Cobalt International Energy- Retrieved 2011-12-31 ^ CODA Holdings- Retrieved 2011-12-31 ^ Cuadrilla Resources Holdings Ltd.- Retrieved 2011-12-31 ^ Davenport Newberry Holdings, LLC - Retrieved 2011-12-31 ^ Dresser Industries- Retrieved 2011-12-31 ^ Dynamic Offshore Resources- Retrieved 2011-12-31 ^ Dynamic Offshore Resources, LLC- Retrieved 2011-12-31 ^ Eagle Energy Company of Oklahoma, LLC- Retrieved 2011-12-31 ^ Emerald Clean Power LLC- Retrieved 2011-12-31 ^ Enduro Resource Partners LLC - Retrieved 2011-12-31 ^ Ensus Ethanol- Retrieved 2011-12-31 ^ Enviva LP- Retrieved 2011-12-31 ^ Foresight Reserves- Retrieved 2011-12-31 ^ Frontier Drilling ASA- Retrieved 2011-12-31 ^ Gibson Energy- Retrieved 2011-12-31 ^ Green Earth Fuels, LLC- Retrieved 2011-12-31 ^ Hestya Energy- Retrieved 2011-12-31 ^ HongHua Co.- Retrieved 2011-12-31 ^ Hudson Products Corporation- Retrieved 2011-12-31 ^ ILX Holdings- Retrieved 2011-12-31 ^ InTANK- Retrieved 2011-12-31 ^ International Logging- Retrieved 2011-12-31 ^ Kinder Morgan- Retrieved 2011-12-31 ^ Kramer Junction- Retrieved 2011-12-31 ^ Legend Natural Gas I, II & III- Retrieved 2011-12-31 ^ Legend Production Holdings LLC- Retrieved 2011-12-31 ^ Liberty Resources LLC- Retrieved 2011-12-31 ^ Magellan Midstream Partners- Retrieved 2011-12-31 ^ Mariner Energy- Retrieved 2011-12-31 ^ Mistral Energy Inc.- Retrieved 2011-12-31 ^ Niska Gas Storage- Retrieved 2011-12-31 ^ Northern Blizzard Resources Inc.- Retrieved 2011-12-31 ^ Patagonia BioEnergia S.A.- Retrieved 2011-12-31 ^ Pattern Energy Group LP- Retrieved 2011-12-31 ^ Niska Gas Storage- Retrieved 2011-12-31 ^ Northern Blizzard Resources Inc.- Retrieved 2011-12-31 ^ Patagonia BioEnergia S.A.- Retrieved 2011-12-31 ^ Pattern Energy Group- Retrieved 2011-12-31 ^ Permian Tank- Retrieved 2011-12-31 ^ Petroplus Holdings AG- Retrieved 2011-12-31 ^ Phoenix Exploration Company- Retrieved 2011-12-31 ^ Quintana Shipping Ltd.- Retrieved 2011-12-31 ^ Quorum Business Solutions, Inc.- Retrieved 2011-12-31 ^ R/C Sugarkane, LLC- Retrieved 2011-12-31 ^ "Exelon Agrees to Sell Three Maryland Coal Plants to Raven Power Holdings LLC" (Press release). Exelon. Aug 9, 2012 . Retrieved 2012-08-13. ^ Red Technology Alliance- Retrieved 2011-12-31 ^ ReEnergy Holdings- Retrieved 2011-12-31 ^ Sapphire Power Holdings- Retrieved 2011-12-31 ^ Seabulk Intl- Retrieved 2011-12-31 ^ Seajacks International- Retrieved 2011-12-31 ^ SemGroup- Retrieved 2011-12-31 ^ Shelter Bay Energy- Retrieved 2011-12-31 ^ Stallion oilfield services acquired- Retrieved 2011-12-28 ^ Stallion Oilfield Services- Retrieved 2011-12-28 ^ Targe Energy- Retrieved 2011-12-31 ^ ThermaSource LLC- Retrieved 2011-12-31 ^ Three Rivers Operating Company LLC- Retrieved 2011-12-31 ^ Titan Operating- Retrieved 2011-12-31 ^ Titan Specialties- Retrieved 2011-12-31 ^ Topaz Power Group, LLC- Retrieved 2011-12-31 ^ Turbine Air Systems, Ltd.- Retrieved 2011-12-31 ^ USA Compression- Retrieved 2011-12-31 ^ Vantage Energy, LLC- Retrieved 2011-12-31 ^ Velocita Energy Developments Ltd- Retrieved 2011-12-31 External links [edit ]