Blackstone raising $3 billion energy fund

April 18, 2011, 5:58 PM UTC

The Blackstone Group (BX) is seeking to raise between $2 billion and $3 billion for an energy-focused private equity fund, Fortune has learned.

Blackstone already makes energy investments out of its main private equity fund, such the recently-announced $1 billion joint venture with Alta Resources to acquire and develop unconventional oil and gas assets in North America. The new vehicle will focus on slightly-smaller transactions, including some growth equity investments.

Team members will include Jamie Kiggen, who most recently led Blackstone’s failed cleantech platform. Kiggen also will continue to work on technology investments for Blackstone’s general fund.

No word on if Blackstone has secured any commitments yet for the new effort, which likely will be marketed by in-house placement team Park Hill Group. A Blackstone spokesman declined to comment.

According to research firm Preqin, four energy-focused private equity funds raised a total of $5.1 billion last quarter. The largest was a $3.5 billion final close for EnCap Energy Capital Fund VIII.