Riverstone approaching investors for debt strategy

The energy equity specialist brought a credit team on board last year.

Riverstone Holdings, a US-based energy and power focused private investment firm, is raising third party capital to support its recently established credit strategy, according to a source familiar with the situation. 

A spokesperson for Riverstone declined to comment on the fundraising.

In January, Riverstone formed Riverstone Credit Opportunities, a portfolio company designed to target dislocation in leveraged finance markets for energy companies. Riverstone backed the company with $375 million in capital split between $250 million from Riverstone Global Energy and Power Fund V and up to $125 million from Riverstone Energy Limited. 

The credit strategy is led by Christopher Abbate and Jamie Brodsky, both joined Riverstone in July 2014. Abbate joined from Citigroup where he was managing director and head or energy leveraged finance. Brodsky’s previous role was at Nomura. Abbate and Brodsky brought Daniel Flannery, also from Nomura, over to Riverstone. The trio had worked together on the energy leveraged finance team at UBS where Abbate was previously head of leveraged finance origination. 

When the credit firm was established, Riverstone said it would focus on market-based opportunities, direct investments and capital relief opportunities. In a statement made in January, Riverstone’s founders, Pierre Lapeyre and David Leuschen, noted that the fall in oil prices had presented an opportunity to make “equity-like investment returns” through more senior debt investments. 

Riverstone is headquartered in New York and founded in 2000.