In order to compete more effectively for larger acquisitions and provide an alternative private equity focus for institutions, Black Stone raised its first institutionally-supported fund, Black Stone Natural Resources I (“Fund I”), in 2002. Black Stone and its affiliates serve as both the general partner as well as the largest limited partner by making a total commitment of $66 million. With total commitments of $150 million, the fund was fully deployed by 2004 after three transactions: Ocean Energy, Toreador Resources, and Pure Resources. Because the Pure, or “Ivory”, acquisition exceeded the commitments and investment parameters of Fund I, a portion of this acquisition was placed in a second institutionally-supported fund and two special purpose vehicles, BSNR Overline, L.P. and Ivory Acquisitions Partners, L.P.

Upon having fully invested Fund I, Black Stone raised its second institutionally-supported fund, Black Stone Natural Resources II (“Fund II”). In September 2004 a final close was held with total commitments of $328 million. Again, Black Stone and its affiliates serve as the general partner and the largest limited partner with commitments totaling $82 million. The first transaction in the fund, as discussed above, was a portion of the Pure transaction. By September 2007 the fund was fully committed by having made 13 acquisitions totaling $316 million. Fund II includes fee mineral acquisitions, overriding royalty interests, a term royalty and non-operated working interests.

In December 2007, Black Stone closed its third institutionally-supported fund, Black Stone Natural Resources III (“Fund III”) and made its first acquisition, Riverbend Production. A second and final close of the fund was held in March 2008 with commitments totaling $400 million. Black Stone is the general partner and the largest limited partner and its combined commitments in the fund total $166 million. The investment mandate for Fund III was slightly broader than Black Stone’s previous funds, allowing for investment in other natural resources in addition to oil and gas. The fund was fully deployed by September 2010 after nine acquisitions and after taking into account a reserve for future capital expenditures associated with non-operated working interest opportunities.