First-time funds to watch

Private Equity International

In the October 2011 issue of Private Equity International, Shane Litts of Rockland Capital was quoted on raising a first-time fund, for which BerchWood Partners acted as global placement agent:

First-time funds to watch
A look at some of the groups limited partners have been buzzing about

In January, Texas-based energy investor Rockland Capital closed its debut institutional fund on $333 million, after being in market for more than two years. The firm generally targets power plants that it believes can be operated more efficiently.

"We understood that there was a fair amount of risk in raising a first-time fund, and that many first-time funds don't ever get raised," says Rockland partner Shane Litts. "There are a lot of LPs that just won't consider you because you're a first-time fund."

Prior to Rockland's first institutional fund, the firm operated a "pledge fund", investing on a deal-by-deal basis. All six investors that participated in the firm's pledge fund committed to Rockland's debut institutional vehicle, which altogether had roughly 30 limited partners.

Rockland's first investment from its debut fund was for an interest in California's La Paloma Generating Plant.