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|Industry||Private equity, Energy & Power|
|Founder||Pierre F. Lapeyre, Jr.
David M. Leuschen
|Headquarters||712 5th Avenue
New York, New York, United States
|Products||Leveraged buyout, Growth capital|
|Total assets||$33 billion|
Number of employees
Riverstone Holdings is a private equity firm based in New York City, established in 2000, focused on leveraged buyout and growth capital investments in the Energy industry and Electrical power industry sectors. The firm focuses on oil and gas exploration, midstream pipeline, electric generation, energy and power services as well as energy and power technology and also invests in renewable energy infrastructure and technology.
Riverstone has operated through a joint venture with the Carlyle Group, managing a family of six funds and as of 2011 has raised approximately $17 billion since inception. As of 2011[update] it had committed about $15.9 billion to 78 investments in North America, South America, Europe and Asia.
The firm is based in New York City and has offices in London and Houston. Riverstone and Carlyle closed on their first fund with $222 million of commitments in 2001. In June 2004, the firms completed fundraising for Carlyle/Riverstone Global Energy & Power Fund II, with $1.1 billion of investor commitments, almost five times the size of the first fund. In 2006, Riverstone and Carlyle raised a pair of funds, including the third in its series of main funds, Carlyle/Riverstone Global Energy and Power III, which raised $3.8 billion of capital. The two firms also raised their first renewable energy focused fund, Carlyle/Riverstone Renewable Energy Infrastructure Fund I, with $685 Million.
|History of private equity
and venture capital
|(Origins of modern private equity)|
|(Leveraged buyout boom)|
|(Leveraged buyout and the venture capital bubble)|
|(Dot-com bubble to the credit crunch)|
Also in 2006, Riverstone was a member of a consortium of private equity firms including Goldman Sachs Capital Partners and Carlyle Group that completed the $27.5 billion (including assumed debt) acquisition of Kinder Morgan, one of the largest pipeline operators in the US. The buyout was backed by Richard Kinder, the company's co-founder.
In 2008, Riverstone and Carlyle raised $6 billion for their fourth main energy fund, Riverstone/Carlyle Global Power & Energy Fund IV. Additionally in 2008, the firms raised a $3.4 billion Riverstone/Carlyle Renewable Energy Infrastructure Fund II as a successor to the $685 million fund raised in 2006 to focus on renewable energy investments.
In September 2013, Riverstone Holdings announced plans to list a new energy vehicle on the LSE in an initial public offering that could raise up to 1.5 billion pounds. The new company, Riverstone Energy Limited (REL), said it had already secured 550 million pounds worth of commitments. It plans to invest in energy companies and assets worldwide, focusing on exploration and production of oil and gas, and their storage and transportation.
Pierre F. Lapeyre, Jr. is based in New York as a Founder and Senior Managing Director of Riverstone.
In 1986, prior to founding Riverstone, Mr. Lapeyre joined Goldman Sachs where he worked as the Managing Director of the Global Energy & Power Group. Over his 14-year investment banking career he focused on energy and power, particularly the midstream/pipeline and oil service sectors. Some of Mr. Lapeyre's responsibilities included client coverage and leading the execution of a wide variety of M&A, IPO, strategic advisory and capital markets financings for clients across all sectors of the industry.
After Mr. Lapeyre received his B.S. in Finance/Economics from the University of Kentucky, he continued to earn his M.B.A. from the University of North Carolina at Chapel Hill. In addition to managing Riverstone Mr. Lapeyre serves on the Boards of Directors of CNOR, Dynamic Industries, Enduro, Enduro II, Fieldwood, Meritage II, Meritage III, Three Rivers III, and Venado. Furthermore, he serves on the Executive Committee of the Board of Visitors of the MD Anderson Cancer Center and is a Trustee and Treasurer of The Convent of the Sacred Heart.
David M. Leuschen, also based in the New York, is the second Founder and Senior Managing Director of Riverstone.
Before founding Riverstone, Mr. Leuschen worked at Goldman Sachs beginning in 1977. While there he became a Partner, Managing Director, and the founder and head of the Goldman Sachs Global Energy & Power Group. Mr. Leuschen and his team participated in many of the major energy and power M&A transactions worldwide. Mr. Leuschen also served as Chairman of the Goldman Sachs Energy Investment Committee. In this position he was responsible for screening potential private equity capital commitments by Goldman Sachs in the energy and power industry.
Within Riverstone, he currently serves on the Boards of Directors of CNOR, Dynamic Industries, Enduro, Enduro II, EP Energy, Fieldwood, and Venado. Outside of Riverstone portfolio companies, Mr. Leuschen has served as a Director of Cambridge Energy Research Associates, Cross Timbers Oil Company (XTO), J. Aron Resources, Mega Energy, Inc. and Bounty Investments. He is also President of Switchback Ranch LLC and serves on a number of nonprofit boards of directors, including his role as a Trustee of United States Olympic Committee as well as the Board of the Montana Land Reliance.
Mr. Leuschen earned his A.B. degree from Dartmouth and his M.B.A. from Dartmouth’s Amos Tuck School of Business.
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- Williams To Sell Control Of Energy Unit For $1.1 Billion. The New York Times, Tuesday, April 22, 2003
- Carlyle, Riverstone power up with $4.5b for two funds: firms add more public pensions to LP base. The New York Times, Private Equity Week, April 10, 2006
- Lord Browne's Renewable Career. Business Week, October 17, 2007
- Riverstone Holdings (company website)