Houston-based EnCap has approached investors in its previous funds to gauge their interest in participating in the new launch, the four sources said. It would be EnCap's 12th flagship fund and it could be officially marketed to investors early in 2023, the sources added. Many private equity investors have fallen out of love with the oil and gas sector as easy-to-drill acreage is becoming scarcer and more expensive for private equity firms. EnCap has sought to attract ESG-minded investors through EnCap Energy Transition Fund II, its second fund dedicated to helping companies transition to clean energy for which it is currently seeking $2 billion, according to a separate source. EnCap is also raising its fifth fund for its pipeline infrastructure affiliate, EnCap Flatrock Midstream, seeking $3 billion.

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