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Westwood Closes Second Flagship Energy Secondaries Fund with More Than $300 Million Raised

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Fundraise underscores the success of Westwood's growing alternative investments platform, which cont...

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Westwood raised over $300 million for its energy secondaries fund, WES II. Investor interest in WHG's energy strategy continues to grow significantly. WES II aims for risk-adjusted returns in matured energy investment opportunities. Institutional investors are demanding liquidity solutions in the energy sector. WHG has over $18 billion in assets under management, boosting confidence.

Sentiment Rationale

The successful fundraise and growing investor interest indicate robust market positioning. Historically, significant capital raises lead to positive stock performance for asset management firms.

Trading Thesis

The immediate impact is linked to stock price reactions to successful fundraising events, which often lead to short-term gains in asset management stocks.

Market-Moving

  • Westwood raised over $300 million for its energy secondaries fund, WES II.
  • Investor interest in WHG's energy strategy continues to grow significantly.
  • WES II aims for risk-adjusted returns in matured energy investment opportunities.

Key Facts

  • Westwood raised over $300 million for its energy secondaries fund, WES II.
  • Investor interest in WHG's energy strategy continues to grow significantly.
  • WES II aims for risk-adjusted returns in matured energy investment opportunities.
  • Institutional investors are demanding liquidity solutions in the energy sector.
  • WHG has over $18 billion in assets under management, boosting confidence.

Companies Mentioned

  • APAM (APAM)
  • BX (BX)
  • KKR (KKR)

Corporate Developments

The article highlights successful fundraisers and investor demand, which are key drivers in asset management performance.

Westwood Holdings Group (NYSE: WHG) Closes Second Flagship Energy Secondaries Fund with Over $300 Million Raised

DALLAS, Jan. 14, 2026 (GLOBE NEWSWIRE) — Westwood Holdings Group (NYSE: WHG), a distinguished boutique asset management firm managing over $18 billion in assets, has successfully closed its Westwood Energy Secondaries Fund II, LLC alongside two related co-investment funds, collectively known as “WES II.” This fundraising round has garnered more than $300 million in capital commitments, significantly surpassing the firm's initial target of $150 million. This achievement highlights strong investor interest in Westwood's expanding energy secondaries strategy.

Fund Details and Objectives

Since the inception of its initial flagship energy secondaries fund in 2023, Westwood has raised nearly $350 million and invested over $250 million across its energy secondaries flagship funds and co-investment offerings. WES II aims to deliver attractive, risk-adjusted returns through a diversified portfolio of energy-focused secondary and continuation fund opportunities.

The fund primarily targets 7-12 year-old limited partnership (“LP”) interests, acquired at significant discounts in the secondary market, and focuses on investments in upstream, midstream, and oil-services companies. These strategies are designed to provide liquidity to institutional investors while partnering with leading energy private equity sponsors.

Investor Response and Future Outlook

WES II has attracted capital from a varied group of investors, including institutional allocators, registered investment advisors (RIAs), family offices, and high-net-worth individuals. Speaking about the capital raise, Brian O. Casey, Westwood’s Chief Executive Officer, stated, “We are very pleased by the reception our WES II Fund received from returning and new investors, leading us to double our initial capital target in 2025.” This reflects the strong demand for Westwood's energy secondaries strategy, initiated in 2023.

Westwood deployed $200 million in energy investments in 2025 and expects to have approximately $100 million available for deployment in 2026, underscoring the firm’s commitment to dynamic partnerships within the energy private equity industry.

Market Trends and Strategic Positioning

Gregory A. Reid, Westwood’s President of Real Assets and Portfolio Manager for WES II, highlighted the rapid growth of the energy secondaries market, stating, “The energy secondaries and continuation fund market is experiencing rapid growth driven by evolving capital needs in the industry and institutional investors’ increased demand for liquidity solutions on mature, cash-flowing energy assets.”

WES II is the second iteration in Westwood’s dedicated energy secondaries strategy, supported by a seasoned energy investment team with decades of industry experience and strong relationships with general partners (GPs) and limited partners (LPs).

About Westwood Holdings Group, Inc.

Westwood Holdings Group (NYSE: WHG) is a boutique asset management firm managing over $18 billion in assets, including more than $3 billion in public and private energy investments. The firm offers a diverse array of actively-managed, outcome-oriented investment strategies in public equities, private equity, and fixed income. With over 40 years of experience, Westwood's client-first approach fosters strong, long-term relationships and adapts to changing markets through innovative strategies.

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