Five Point Energy LLC has closed Five Point Energy Fund IV LP, receiving approximately $1.4 billion in cumulative capital commitments, the private equity firm said on Sept. 9.
Fund IV was oversubscribed and exceeded its target of $1.25 billion, Five Point said.
Fund IV is a continuation of Five Point’s strategy to leverage the firm’s direct operating model, disciplined capital deployment into an undercapitalized market and attractive long-term value generation.
In September 2023, Five Point entered into a joint venture with Diamondback Energy called Deep Blue Midland Basin, which most recently acquired water infrastructure from Lagoon Operating Midland to become a player in sustainable water management in the core of the basin.
In June, the company’s Permian Basin surface acreage and water company LandBridge Co. successfully launched an IPO.
“We thank our existing limited partners and new investors for their overwhelming support. The closing of Fund IV is an endorsement of our team’s demonstrated strategy of establishing and operating best-in-class sustainable infrastructure platforms, including the highly successful initial public offering of LandBridge,” CEO David Capobianco said.
Since Five Point’s inception in 2012, it has been a pioneer of midstream water management systems, he said.
“We are proud to have progressively addressed the produced water needs of our blue-chip clients and to continuously bring next generation solutions, including recycling, enhanced evaporation and desalination technologies to our partners,” he said.
Five Point has also raised approximately $4 billion of limited partner commitments across four distinct funds and a yield fund, with each vintage increasing in size. Fund IV received support from institutional investors including endowments, public pensions and family offices.
Five Point is led by Capobianco, who is also a managing partner, and Matthew Morrow, COO and managing partner.