Goldman Sachs Is Said to Seek Up to $3.5 Billion for Dedicated Energy Fund

Goldman Sachs Group Inc. headquarters stands in New York. Photographer: Jin Lee/Bloomberg

Goldman Sachs Group Inc. (GS) is seeking $2 billion to $3.5 billion for its first dedicated energy private-equity fund, according to two prospective investors.
The fund, Broad Street Energy Partners, will invest globally in areas such as oil, gas and power, said the investors, who asked not to be named because the information is private.
Goldman Sachs joins a growing lineup of firms raising pools of capital to take advantage of increased demand for energy and commodities. Barclays Natural Resource Investments, a unit of Barclays Capital, is raising its first dedicated private-equity energy fund to make investments globally. Blackstone Group LP (BX), the largest private-equity firm, and Apollo Global Management (APO) are also marketing debut energy funds.
Andrea Raphael, a spokeswoman for Goldman Sachs, declined to comment.
The new fund will be managed by the principal investment team of the bank. Kenneth Pontarelli, head of natural resources and a managing director in the merchant-banking division at Goldman Sachs, is heading the effort, according to the investors.
The Goldman Sachs merchant-banking division has made energy private-equity investments in the past out of its global private-equity funds, and Pontarelli managed those energy deals.
Past energy deals by GS Capital Partners (PEF3383) included the $45 billion buyout of electric utility company TXU (TXU), now called Energy Future Holdings Corp., Cobalt International Energy Inc. (CIE) and Kinder Morgan Inc.
To contact the reporter on this story: Sabrina Willmer in New York at swillmer2@bloomberg.net
To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net
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