China's Hainan Zhenghe commits $130m to First Reserve fund

The private equity firm is seeking to raise $5 billion for First Reserve Fund XIII, which will invest in heavy manufacturing, mining and metals, and utilities sectors. AVCJ Research's records show that Washington State Investment Board has committed $400 million to the vehicle.

The investment will help the company expand its portfolio into petroleum and natural gas business, Hainan Zhenghe said in a regulatory filing. It has also agreed to co-invest in deals sourced from North America.

As part of the deal, First Reserve will give Hainan Zhenghe six weeks prior notice to review acquisition opportunities from its North American investments in Fund XIII.

Furthermore, the US-based PE firm and Hainan Zhenghe will jointly form an Asian-focused fund to invest in oil exploitation projects in China and Central Asia. Both parties will participate in managing the fund. Details of the capital raised for the vehicle were not disclosed.

First Reserve is an energy-focused private equity and infrastructure investment firm with more than $26 billion in capital raised since inception in 1983. As of the end of September, the firm had generated an IRR of 32.3% on its 475 investments.

First Reserve's investor base comprises corporate and public retirement funds, sovereign wealth funds, endowments and foundations.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Fundraising
• energy
• Fundraising
• China
• LPs
• USA
• First Reserve Corp