Houston-based investment firm BlackGold Capital Management LP is aiming to raise $600 million for a private fund that will lend directly to the beleaguered oil and gas sector, according to two sources familiar with the matter.

The firm is working with investment bank Evercore Inc. to raise $300 million directly and $300 million through co-investment, according to one of the sources.

BlackGold declined to comment. Evercore did not return a request for comment.

BlackGold started marketing the fund, its largest to date, in March, as the coronavirus pandemic sent oil prices plunging and brought production to a halt on fears of oversupply.

The firm joins hedge fund Angelo Gordon & Co. in raising funds for the U.S. shale industry, which had been financed by access to cheap capital that is now drying up.

Angelo Gordon & Co. aims to raise as much as $1.5 billion to buy the debt of distressed oil and gas companies, Reuters reported earlier this month.

BlackGold began private direct lending to the energy sector in 2017 as some banks pulled back offering capital to the industry.