An affiliate of the Canada Pension Plan Investment Board has re-upped its investment with LongPoint Minerals.
Toronto-based CPPIB’s credit team invested $375 million into LongPoint Mineral II, which closed with $846 million in equity commitments in July, LongPoint announced on Tuesday. Jeffries served as the fund’s placement agent.
Longpoint’s latest vehicle received many repeat investors from its first fund, according to a source familiar with the situation. This person said the re-ups could be attributed to the favorable returns from that fund, which has already started making distributions to investors.
Denver-based LongPoint closed its debut vehicle on $525 million in 2016. Of that total, CPPIB credit contributed $450 million, amounting to over 85 percent of the capital. It was the first time CPIBB invested in oil and gas royalties, a spokesman said.
Fund II will continue to focus on the long-life, high-growth mineral interests that LongPoint has focused on, the source added.
The company currently buys acreage in the Permian Basin, which is located across Texas and New Mexico, and the Anadarko Basin in Texas and Oklahoma. Fund I completed over 200 transactions that encompass over 13,400 acres.
CPPIB has recently invested in other types of energy companies as well. In 2017, it invested $1 billion to help form Encino Acquisition Partners, in which it owns a 98 percent stake. CPPIB, along with Allianz Capital Partners, also acquired a 20 percent stake in Natural Fenosa’s Spanish natural gas distribution business when the two investors put a combined €1.5 billion into the company.
CPPIB currently has $6.2 billion invested in energy real assets.
FourPoint Energy, a US natural gas and oil exploration and research company, launched the first LongPoint Minerals entity in 2016. FourPoint was founded in 2013 and is majority owned by GSO Capital Partners and Quantum Energy.
Fundraising for energy-focused vehicles through July stood at $12.46 billion, just shy of 2017’s total of $13.18 billion. Energy funds locked down $9.83 billion in 2016, according to a report from sister publication Private Equity International.