Riverstone Holdings
| Company type | Private |
|---|---|
| Industry | Private equity, Energy, Power |
| Founded | 2000 |
| Founder | Pierre F. Lapeyre, Jr., David M. Leuschen |
| Headquarters | New York City , United States |
Area served | Worldwide |
| Products | Leveraged buyouts, Growth capital, Credit investments in energy and power sectors |
| Website | riverstonellc |
Riverstone Holdings is a New York City–based multinational private equity firm concentrating on leveraged buyouts, growth capital, and credit investments within the energy and power sectors. The company focuses on areas such as oil and gas exploration, midstream pipeline operations, electricity production, energy services, technology innovations, and renewable energy infrastructure. Since its inception in 2000, Riverstone has amassed close to $41 billion in capital.
History
Established by Pierre F. Lapeyre, Jr. and David M. Leuschen—who were instrumental in founding Goldman Sachs’ Global Energy & Power Group during the mid-1980s—Riverstone is headquartered in New York with additional offices in Houston, London, and Mexico City. Collaborating with Carlyle, the firm launched its initial fund in 2001, securing $222 million in commitments. By mid-2004, they had raised $1.1 billion for their second fund. In 2006, Riverstone and Carlyle collected $3.8 billion for their third flagship fund alongside $685 million for their first renewable energy fund.
Also in 2006, Riverstone participated in a consortium with Goldman Sachs Capital Partners and Carlyle Group to acquire Kinder Morgan for $27.5 billion (including debt), representing one of the largest pipeline acquisitions in the United States.
In 2008, the partnership between Riverstone and Carlyle yielded $6 billion for their fourth energy fund and an additional $3.4 billion for the second renewable energy infrastructure fund aimed at expanding renewable asset investments.
Following allegations concerning improper conduct related to pension funds, Riverstone paid $30 million in restitution in 2009.
By 2013, operating independently from Carlyle, Riverstone secured $7.7 billion for its fifth primary energy fund. In 2016, the firm raised $5.1 billion for its sixth fund while also launching its inaugural flagship credit fund; a subsequent credit fund generated $750 million in 2018.
In October 2020 and February 2021, Riverstone’s Decarbonization Plus Acquisition Corporation and its follow-up entity completed IPOs raising $200 million and $350 million respectively, reinforcing the firm’s commitment to decarbonization-focused investments.
Operations
As of 2020, Riverstone alongside Carlyle manages six principal funds dedicated to energy buyouts, two credit funds, and a platform centered on renewable investments, collectively managing approximately $41 billion in raised capital. Additionally, the firm oversees Riverstone Energy, which is publicly traded on the London Stock Exchange.
Green/Environmental Initiatives
In June 2009, Riverstone/Carlyle completed the acquisition of Pattern Energy Group LP, a prominent renewable energy enterprise. This deal marked Riverstone’s tenth investment within the renewable energy industry. Pattern Energy operates extensively across the United States, Canada, and Japan, establishing itself as a key private player in the sector.
By March 2010, Riverstone had taken a stake in Enviva Partners LP, recognized as one of the foremost global producers of wood pellets and processed woody biomass for industrial use. During the same month, Riverstone collaborated with The AES Corporation to create AES Solar, dedicating up to $1 billion toward the development of large-scale solar photovoltaic projects internationally. AES Solar specializes in the construction and management of ground-mounted solar PV facilities that supply power to commercial grid networks.
In July 2020, Enviva Holdings, LP finalized a recapitalization effort that secured over $1 billion in fresh equity and commitments from affiliates linked to Riverstone.
January 2021 saw Riverstone invest in FreeWire Technologies, a company focused on electric vehicle (EV) charging infrastructure and power solutions. Additionally, Riverstone Energy Limited allocated $25 million to Loanpal, LLC during that month. Loanpal is a fintech firm dedicated to sustainable home improvements and plays a significant role in financing more than half of residential solar installations across the United States.
In February 2021, Riverstone released its second annual ESG report, reiterating its dedication to responsible investment practices and adherence to environmental, social, and governance standards.
External links
- Williams To Sell Control Of Energy Unit For $1.1 Billion. The New York Times, April 22, 2003
- Carlyle, Riverstone raise $4.5B for two funds, expanding public pension LP base. The New York Times, Private Equity Week, April 10, 2006
- Lord Browne's Renewable Career. Business Week, October 17, 2007