First Reserve Corporation invests $ 500 million in Barra Energia, in Brazil

First Reserve Corporation, an energy industry-focused private equity and infrastructure firm, has backed Brazilian exploration and production company Barra Energia Petróleo e Gás with a $500m investment.

First Reserve is an independently owned firm since 1983. The firm has developed a global platform, having invested approximately $12.5 billion in equity. First Reserve has adopted the United Nations’ Principles for Responsible Investment (PRI), becoming the first energy-related private equity firm, and one of a handful of private equity firms, to adopt the Principles. First Reserve has also been appointed to a member of the PRI’s private equity steering committee.

Barra Energia Petróleo e Gás, headquartered in Rio de Janeiro, will pursue the acquisition, exploration and development of oil and gas assets in Brazil. Portfolio aims a  balance between in land and sea basins in Brazil. Barra Energia is directed by João Carlos de Luca and Renato Tadeu Bertani, both former executives of Petrobras.

Recent estimates by Reuters predicts that Brazil-based private equity funds could raise up to $15bn from investors by mid-2011, driven by a growing economy and increased financial risk-taking.

Published by Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Group. She has a PhD in Economic History and advises companies and investment agencies in international business development.She served as Corporate Relations Director and later, on the board of the Brazilian Investment Analysts Association (APIMEC).

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