Energy to burn

15 November 2017 By Lauren Silva Laughlin Follow @TheRealLSL

The buyout firm will commit up to $250 mln from an existing fund to work alongside a new $300 mln blank-check vehicle. It’s a complicated way to skirt investment limits, and shareholders will have to pay for the privilege. But with a solid track record and thesis, it could work.

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Regalwood Global Energy, an investment vehicle of Carlyle International Energy Partners, is raising $300 million in a public offering. CIEP, a $2.5 billion fund of the private-equity firm, will invest up to $250 million alongside the blank-check company.

The new entity will be led by Marcel van Poecke, manager of the private energy-investment group at Carlyle, and will look to buy international assets. As part of the deal, CIEP will buy 20 percent of Regalwood’s stock at a significantly discounted price, subject to lockup constraints.

Several private-equity firms have launched special purpose acquisition vehicles in the past two years, including two backed by Riverstone Holdings, which previously had an investment relationship with Carlyle.

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