Westwood Holdings Group announced the final close of its second flagship Energy Secondaries Fund, WES II, and two related co‑investment vehicles on January 14, 2026, securing more than $300 million in capital commitments. The new fund surpassed the firm’s original $150 million target by 100 %, underscoring robust investor demand for its energy‑focused secondary strategy.
WES II will target limited‑partner interests that are 7‑12 years old, acquiring them at an average discount of roughly 30 % to net asset value. The fund also pursues general‑partner‑led continuation opportunities in upstream, midstream and oil‑services companies, leveraging Westwood’s deep sector expertise and relationships with both GPs and LPs.
The firm deployed $200 million of the capital in 2025 and plans to deploy the remaining $100 million in 2026, positioning the fund to generate attractive, risk‑adjusted returns for its investors. The deployment schedule reflects a disciplined approach that balances early‑stage opportunities with a steady pipeline of later‑stage assets.
Westwood’s first energy secondaries fund, launched in 2023, raised only $34 million, making the current raise a significant milestone in the firm’s growth trajectory. The capital raise also expands the broader private‑fund platform, which has amassed more than $18 billion in assets under management across three flagship funds and three co‑investment vehicles since 2023.
Management highlighted the market context behind the strong close. CEO Brian O. Casey said the firm’s “deep sector knowledge and disciplined sourcing” drove investor confidence, while President of Real Assets Gregory A. Reid noted that “evolving capital needs and a heightened demand for liquidity solutions” are propelling the energy secondaries market. The firm’s focus on traditional energy assets, rather than renewables, is a deliberate strategic choice that aligns with its core competencies.
The successful close strengthens Westwood’s competitive positioning in the growing energy secondaries market, provides additional capital to support its broader platform, and signals confidence in the firm’s ability to capture value from discounted LP interests and continuation fund opportunities. The raise is expected to underpin future growth initiatives and reinforce the firm’s reputation as a leading player in the alternative investments space.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.