Westwood Holdings Group announced it has closed Westwood Energy Secondaries Fund II and two related co-investment vehicles with more than $300 million in capital commitments, more than doubling the strategy’s $150 million target and extending the firm’s push to scale its alternative investments platform.
The Dallas-based boutique asset manager said the Fund II vehicles, collectively referred to as WES II, are designed to generate attractive risk-adjusted returns by buying interests in mature energy private equity funds and backing general partner-led continuation transactions. Westwood said it focuses primarily on acquiring 7- to 12-year-old limited partner interests in the secondary market at a discount, while also pursuing continuation fund portfolio company investments across upstream, midstream, and oilfield services.
Westwood launched its dedicated energy secondaries strategy in 2023 with its first flagship fund. Since then, the firm said it has raised nearly $350 million and invested more than $250 million across two flagship vehicles and three co-investment funds.
The firm said the WES II vehicles deployed $200 million into energy investments in 2025 and have roughly $100 million left to invest in 2026. Westwood also positioned the funds as a liquidity solution for institutional investors and as a source of strategic capital for energy-focused private equity sponsors managing mature portfolios.
Westwood said the final close drew commitments from a mix of institutional allocators, registered investment advisors, family offices, and high-net-worth investors. The firm reported more than $18 billion in assets under management and advisement, including more than $3 billion in public and private energy investments.
KEY QUOTES:
“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. We are excited about the dynamic partnerships we have established in the energy private equity industry and the opportunities that lay ahead for continued growth in 2026.”
Brian O. Casey, Chief Executive Officer, Westwood Holdings Group
“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. The Funds intend to pursue opportunities across the energy landscape and partner with high-quality sponsors seeking strategic secondary capital for limited partners, continuation funds and direct company investments.”
Gregory A. Reid, President of Real Assets and WES II Portfolio Manager, Westwood Holdings Group
