The SGAM/4D Global Energy Fund, which bills itself as the first European private equity fund exclusively dedicated to oil and gas, has made its first closing with $60 million. Société Générale Asset Management, Paris, is sponsoring the fund and has committed $25 million. The fund has a target of $150 million and aims to invest in profitable, privately owned midmarket companies in the oil and gas industry, primarily in Europe. The fund expects to make 10 to 15 investments, avoiding speculative exploration, trading or technology risks. It intends to take a minority stake (10- to 30%) in its investment companies, and its primary exit strategy likely would be an acquisition by a larger company, rather than an initial public offering, says Tighe Noonan, one of the fund's founding partners. The largest chunk of the fund is expected to go to upstream projects, Noonan adds. In addition to Noonan, the 4D founding partners are Simon Eyers and Jérôme Halbout. Eyers was the head of project finance in Europe at Credit Suisse First Boston; Halbout was the head of energy at Crédit Lyonnais; and Noonan was the global head of oil and gas project finance at Société Générale. The fund's advisory board includes Sadek Boussena, former president of OPEC and former Algerian energy minister; Alain Madec, former head of strategy and finance of TotalFinaElf; and John Snyder, founder of Snyder Oil Corp. The fund's first investment is a minority stake in an Italian refinery, and it is in due diligence for its second investment. -Jodi Wetuski
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