FRC Founders Corporations (doing business as First Reserve) fuels the companies that help fuel the world. The private equity firm invests in middle-market energy companies involved in such sectors as oilfield services, equipment and manufacturing, energy infrastructure and reserves, renewable and alternative energy, and energy-related insurance and financial products. First Reserve's investor base is primarily made up of corporations, endowments, foundations, governments, and public retirement funds. Over the years First Reserve has invested more than $23 billion. The company's current portfolio includes stakes in more than 30 firms, including Brand Energy & Infrastructure Services and CHC Helicopter.
While First Reserve does not get involved with the day-to-day activities of its portfolio companies, it does utilize its expertise in the energy sector to provide strategic guidance and often makes add-on acquisitions to them.
The investment firm often handles multi-billion-dollar deals and targets energy companies with enterprise values of up to $10 billion. First Reserve's main strategy is to invest in diverse sectors within the energy industry and to capitalize on opportunities created by trends in the industry.
In 2009 First Reserve raised some $9 billion for a new energy fund that will continue to make investments in the oil industry, as well as coal, natural gas, and, to a lesser extent, renewable resources. Among its investments is a 45% stake of Ansaldo Energia, which it acquired from Italian defense and aerospace group Finmeccanica in 2011.
In 2011 First Reserve closed on a $1.2 billion infrastructure fund. That year it began making investments in infrastructure projects. Late in 2011 the company and Energy Corporation of America announced a new joint venture to be named First ECA Midstream. Plans are to utilize two new oil and natural gas gathering systems located in the Clearfield and Greene counties on Pennsylvania in the Marcellus Shale region. First ECA Midstream is capitalized at $200 million.
Also in 2011 First Reserve teamed with CalPERS to acquire a portfolio of natural gas fired power generation plants and a related transmission system. The plants are in California, New Mexico, Texas, and Connecticut.
First Reserve put more support behind renewable energy sources in 2010 when it formed a joint venture with Sun Edison. The partnership will provide up to $1.5 billion to fund the acquisition and development of solar energy projects.
Once acquiring a company First Reserve is mainly interested in building that company's value and then selling it for a profit. In 2011 it sold Dresser, which it owned with Riverstone Holdings, to General Electric for some $3 billion. It also sold 80% of an oil storage terminal in the Bahamas to Buckeye for more than $1 billion. – less
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