Closed-end fund raises $27.6 million

By IE Staff |

T. Boone Pickens Energy Fund has completed its domestic initial public offering of Class A Combined Units, Class F Combined Units and Class U Combined Units and a private placement of Class I Combined Units.

The closed-end fund raised gross proceeds of over $27.6 million under its offerings.

The fund has been created to provide investors with the opportunity for long-term capital growth by providing access to the energy-related investment strategies of TBP Investments Management LLC. TBP and its management team are led by U.S. oil investor T. Boone Pickens.

The fund will seek to achieve its investment objective by investing the net proceeds of the offerings in an actively managed portfolio consisting primarily of equity and commodity-related investments within the energy and energy-related sectors.

The public offering was made through a syndicate of investment dealers led by BMO Capital Markets and including CIBC, RBC Capital Markets, TD Securities Inc., Blackmont Capital Inc., Canaccord Financial Ltd., Desjardins Securities Inc., Dundee Securities Corp., HSBC Securities (Canada) Inc., Raymond James Ltd., GMP Securities L.P., Manulife Securities Inc., Wellington West Capital Markets Inc. and Research Capital Corp.

Pickens acquires fund units

Concurrently with the completion of the fund’s initial public offering, T. Boone Pickens acquired ownership of 250,000 Class I Combined Units of the fund by way of a private placement.

The units were acquired by Pickens for an aggregate price of US$2.5 million, or US$10 per unit. As a result of this acquisition, Pickens beneficially owns or exercises control over 250,000 Class I Combined Units of the Fund (representing all of the outstanding Class I Combined Units of the fund and approximately 9.1% of all of the issued and outstanding units and warrants of the fund).

The units were acquired by Pickens for investment purposes. Pickens does not currently intend to acquire ownership of, or control over, additional securities of the fund, the fund says.