Energy investment giant EnCap Investments LP has raised over $2 billion for a continuation fund dedicated to extending its long-standing partnership with PennEnergy Resources LLC, reinforcing its presence in the booming natural gas sector.
The fund, announced Tuesday, was advised by Kirkland & Ellis LLP and Vinson & Elkins LLP, marking a major milestone for the Houston-based private equity powerhouse.
$2 Billion Power Play in Natural Gas
The EnCap $2B Continuation Fund secured capital from a mix of old and new investors, including EnCap Energy Capital Fund XII LP, which itself closed with $5.25 billion in October 2024. Additional support came from Andros Capital Partners LLC and Goldman Sachs Alternatives’ vintage strategies, alongside family offices and institutional investors.
The continuation vehicle allows EnCap to maintain and expand its partnership with Pittsburgh-based PennEnergy, an independent natural gas company focused on the Marcellus Shale play, one of North America’s richest energy basins. EnCap first invested in PennEnergy in 2011, according to the firm’s website.
“We’re thrilled to continue supporting PennEnergy’s exceptional team as they build one of the premier businesses in the natural gas sector,” said Jason DeLorenzo, EnCap’s managing partner. “The strong investor response to this fund reflects the trust and long-term value PennEnergy has created.”
