Energy Investor NGP Seeks $2.5 Billion for New Oil Patch Bets

NGP Energy Capital Management is seeking $2.5 billion for a new fund, NGP Natural Resources XIV, to invest in oil-and-gas deals. “Money is flowing back to oil and gas, but I think that capital is flowing to proven managers,” said Jonathan Dhanawade, a partner and head of private-capital solutions at law firm Mayer Brown.

Investors are likely to continue favoring energy specialists that follow a “disciplined approach” to deals rather than strategies reliant on rising commodity prices, Dhanawade said. But war-driven disruptions to energy markets help make investment strategies focused on U.S. oil and gas more appealing, he added. “It actually reinforces the thesis around domestic energy infrastructure in a powerful way.”