The London-based firm recently held a first close – the point at which it can start investing – at $ 885 million, according to a person familiar with the matter.
The firm started talking to investors in May and aims to raise $ 1 billion in total. It plans to close the fund by the end of the year, the person added. Blue Water Energy’s $ 861 million debut fund raised in May 2013 is now approximately 80% invested with room for one or two further investments, the person said.
London-based placement agent Asante Capital Group is acting as an adviser on the fundraising.
Blue Water Energy was founded in 2011 by Jerker Johansson, the former chief executive of UBS Investment Bank, Graeme Sword, the former head of oil and gas investments at 3i Group, and Thomas Sikorski, who was formerly a managing director at First Reserve.
The firm usually writes equity tickets of between $ 50 million and $ 150 million per deal and invests in mid-market oil and gas companies that are primarily based in Europe.
Blue Water Energy is considering buying some assets in the North Sea that oil company Shell is about to divest, the person added.
Private equity investments in the oil and gas have decreased in recent years. In 2015, there were 112 such investments globally with a total value of $ 24 billion – down from 200 investments in 2014 with a value of $ 53 billion, according to data provider Dealogic.