Lime Rock Announces Closing of Lime Rock Partners VI AF Acquisition Fund

Rhea-AI Summary

Lime Rock Partners has successfully closed its $203 million acquisition fund, Lime Rock Partners VI AF, with Goldman Sachs Asset Management Vintage Funds as the lead investor. The fund focuses on assets in the Permian Basin, particularly interests in CrownRock Minerals. Limited partners had the option to reinvest or take full liquidity. Since 2015, Lime Rock has invested nearly $1.1 billion in minerals and royalties. The firm continues to collaborate with CrownQuest Operating to pursue value creation through strategic asset acquisitions.

Positive

• Closed $203 million acquisition fund, Lime Rock Partners VI AF.
• Increased investor commitment with $134 million in new capital.
• Focus on mineral and royalty interests in the lucrative Permian Basin.
• Almost $1.1 billion invested in minerals and royalties since 2015.
• Continued partnership with CrownQuest Operating to enhance asset value.

Negative

• None.

HOUSTON, Nov. 23, 2021 /PRNewswire/ -- Lime Rock Partners, private equity investors of growth capital in E&P and oilfield service companies, announces the successful closing of a $203 million acquisition fund, Lime Rock Partners VI AF. The fund has acquired assets formerly owned by Lime Rock Partners VI, L.P., a 2012 vintage fund, and seeks to benefit from further value appreciation in those assets. The acquisition fund, in which the Goldman Sachs Asset Management Vintage Funds served as the lead investor, received $134 million in new capital commitments to it and a separate co-investment vehicle.

All Fund VI limited partners had the option of reinvesting their Fund VI exposure into the acquisition fund or receiving accelerated full liquidity.

Interests in CrownRock Minerals vehicles, two entities acquiring mineral and royalty interests in the Permian Basin, represented the vast majority of the assets in the acquisition fund. Inclusive of co-investment vehicles, Lime Rock Partners has invested nearly $1.1 billion in minerals and royalties since 2015.

Since 2007, Lime Rock has partnered with Midland, Texas-based CrownQuest Operating, the management of the CrownRock Minerals vehicles and of CrownRock, an operator in the Midland Basin.  In 2018, Lime Rock completed its first acquisition fund, Lime Rock Partners IV AF, a then $1.9 billion fund.  Fund IV AF mainly consists of interests in CrownRock, which is still majority owned by that fund.

John Reynolds, co-founder and Managing Director of Lime Rock Partners, said, "We are thankful to the new acquisition fund investors and rolling investors for their attention and enthusiasm for the options presented to them. With this, our second GP-led secondary, we continue to believe that there are good, market solutions to respond to some investors' preferences for liquidity while allowing others to hold investments beyond a normal fund life." 

J McLane, Chief Investment Officer and Managing Director, added, "In both of these secondary processes, we have sought to align new and rolling investors with the potential value creation we believe is possible by patient acquisition and development of assets in the Midland Basin—both working interest and mineral interests. We are, as always, grateful to the CrownQuest team and their partnership in executing these strategies."

Brian Musto, Managing Director in Goldman Sachs Asset Management Vintage Funds, said, "We are excited to partner with the Lime Rock team on this transaction to deliver liquidity, duration, optionality, and capital for Fund VI limited partners, CrownRock Minerals, and other portfolio companies.  Goldman Sachs Asset Management is delighted to build on its existing relationship with Lime Rock with our new capital commitment in this fund."

Moelis & Company served as financial adviser to Fund VI.  Morgan, Lewis & Bockius LLP served as legal adviser to the funds and Lime Rock.

About Lime Rock
Since its inception in 1998, Lime Rock Management has raised $9.7 billion in private equity funds and affiliated co-investment vehicles for investment in the energy industry through three strategies: Lime Rock Partners, investors of growth capital in E&P and oilfield service companies worldwide; Lime Rock Resources, acquirers and operators of oil and gas properties in the United States; and Lime Rock New Energy, investors of growth capital in new energy companies in North America. Lime Rock Partners is a creative investment partner in building differentiated oil and gas businesses, side by side, with entrepreneurs every day. For more information, please visit: www.lrpartners.com.

About Goldman Sachs Asset Management Vintage Funds
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world's leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of September 30, 2021. Driven by a passion for our clients' performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure.  Established in 1998, the Vintage Funds within Goldman Sachs Asset Management have been innovators in the secondary market and have invested over $40 billion of capital since inception. The Vintage Funds provide liquidity, capital and partnering solutions to private market investors and managers worldwide across private equity strategies. Follow us on LinkedIn.

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SOURCE Lime Rock Partners

FAQ

What is Lime Rock Partners VI AF acquisition fund?

Lime Rock Partners VI AF is a $203 million acquisition fund focusing on assets in the Permian Basin, particularly mineral and royalty interests.

Who are the investors in Lime Rock Partners VI AF?

Goldman Sachs Asset Management Vintage Funds is the lead investor, along with commitments from previous Fund VI limited partners.

What assets does the Lime Rock Partners VI AF fund target?

The fund primarily targets mineral and royalty interests in the Permian Basin, managed through CrownRock Minerals.

How much capital has Lime Rock invested in minerals and royalties?

Since 2015, Lime Rock has invested nearly $1.1 billion in minerals and royalties.

What options do Fund VI limited partners have regarding their investments?

Fund VI limited partners could either reinvest their exposure into the acquisition fund or opt for accelerated full liquidity.