Invico Energy Yield
Invico Energy Yield (“Invico Energy” or the “Fund”) invests in a diversified portfolio of producing North American oil and gas assets through royalty and non-operated working interest investments. The Fund seeks to generate quarterly cash distributions while pursuing long-term capital appreciation through operator-led development and strategic asset monetization opportunities.
1 Target performance is based on current strategy assumptions and should be reviewed alongside applicable Fund materials.
2 Paid quarterly.
Overview
Direct Ownership of Producing North American Oil & Gas Assets
Invico Energy invests in a diversified portfolio of producing North American oil and gas assets through royalty and non-operated working-interest investments across established U.S. and Canadian basins. Seeded with a portfolio of cash-flowing assets, the Fund provides immediate exposure to existing production while maintaining a flexible mandate to allocate capital based on relative value and prevailing market opportunities. Through disciplined asset selection and technical underwriting, Invico Energy seeks to generate quarterly cash distributions and long-term capital appreciation for accredited investors.
Why
Why Invico Energy Yield?
Direct
Ownership
Providing direct, passive ownership of producing North American oil and gas assets, Invico Energy offers investors exposure to the cash flow and long-term value creation potential of real assets without assuming day-to-day operational responsibility.
Flexible Investment Mandate
Capital is allocated between royalty and non-operated working-interest investments based on relative value and prevailing market opportunities. This flexible approach allows the portfolio to adapt to changing market conditions while remaining focused on disciplined capital deployment.
Diversification
The portfolio is diversified across established U.S. and Canadian basins, operators, asset types, and commodity exposure, helping reduce concentration risk while creating multiple sources of return.
Value
Creation
Beyond current production, Invico Energy seeks to capture additional value through operator-led development, technological advancements, and strategic asset monetization opportunities that may enhance long-term investor returns.
Experienced Management
Backed by an experienced Energy Investment Team with expertise across engineering, geology, land, and finance, Invico Energy applies a disciplined, asset-level investment approach to identify, evaluate, and actively manage producing oil and gas investments throughout North America.
Immediate
Cash Flow
Seeded with a portfolio of producing assets, Invico Energy provides immediate exposure to existing production and quarterly cash distributions from inception, reducing the typical cash deployment lag associated with new investment strategies.
Resources
Latest Energy News & Insights
Stay informed with the latest news, insights, and updates on Invico Energy.
How Canadian Energy Funds Manage Commodity and Currency Risk
Learn how energy fund managers use commodity and FX hedging to manage volatility, support cash
How Invico’s Energy Assets Are Valued
A detailed look at energy asset valuation, including 3Con price decks, DCF analysis, and commodity
Geopolitics, Oil Markets, & the Rising Importance of North American Energy Supply
Recent geopolitical developments in the Middle East have once again placed global energy markets at
Rob King Joins Invico Capital Corporation as Executive Vice President, Energy Investments
Invico Capital Corporation is delighted to announce the appointment of Rob King as its new
How Canadian Energy Funds Manage Commodity and Currency Risk
Learn how energy fund managers use commodity and FX hedging to manage volatility, support cash
How Invico’s Energy Assets Are Valued
A detailed look at energy asset valuation, including 3Con price decks, DCF analysis, and commodity
Geopolitics, Oil Markets, & the Rising Importance of North American Energy Supply
Recent geopolitical developments in the Middle East have once again placed global energy markets at
Rob King Joins Invico Capital Corporation as Executive Vice President, Energy Investments
Invico Capital Corporation is delighted to announce the appointment of Rob King as its new
Overview
Direct Ownership of Producing North American Oil & Gas Assets
Invico Energy invests in a diversified portfolio of producing North American oil and gas assets through royalty and non-operated working-interest investments across established U.S. and Canadian basins. Seeded with a portfolio of cash-flowing assets, the Fund provides immediate exposure to existing production while maintaining a flexible mandate to allocate capital based on relative value and prevailing market opportunities. Through disciplined asset selection and technical underwriting, Invico Energy seeks to generate quarterly cash distributions and long-term capital appreciation for accredited investors.
Why
Why Invico Energy Yield?
Direct
Ownership
Providing direct, passive ownership of producing North American oil and gas assets, Invico Energy offers investors exposure to the cash flow and long-term value creation potential of real assets without assuming day-to-day operational responsibility.
Immediate
Cash Flow
Seeded with a portfolio of producing assets, Invico Energy provides immediate exposure to existing production and quarterly cash distributions from inception, reducing the typical cash deployment lag associated with new investment strategies.
Flexible Investment Mandate
Capital is allocated between royalty and non-operated working-interest investments based on relative value and prevailing market opportunities. This flexible approach allows the portfolio to adapt to changing market conditions while remaining focused on disciplined capital deployment.
Diversification
The portfolio is diversified across established U.S. and Canadian basins, operators, asset types, and commodity exposure, helping reduce concentration risk while creating multiple sources of return.
Value
Creation
Beyond current production, Invico Energy seeks to capture additional value through operator-led development, technological advancements, and strategic asset monetization opportunities that may enhance long-term investor returns.
Experienced Management
Backed by an experienced Energy Investment Team with expertise across engineering, geology, land, and finance, Invico Energy applies a disciplined, asset-level investment approach to identify, evaluate, and actively manage producing oil and gas investments throughout North America.
Target
Portfolio Composition
Targeting a US$250 million fund size, approximately 20% of committed capital is expected to provide immediate exposure to an established portfolio of producing oil and gas assets, with the remaining 80% available for deployment into new investment opportunities.
80%
20%
(WI)
30%
(Royalty)
70%
Seed Portfolio
The seed portfolio comprises existing oil and gas assets that Invico previously acquired, providing immediate exposure to established production and cash flow. The portfolio includes royalty interests in the Eagle Ford basin in Texas and non-operated working interests in the Powder River basin in Wyoming.
Target Portfolio
Building on the seed portfolio, the Fund expects to deploy additional capital across leading U.S. liquids-weighted basins, including the Eagle Ford, Powder River, DJ, and Bakken; natural gas-weighted opportunities in the Haynesville; and liquids-weighted opportunities across Canada.
Details
Fund Details
Fund Name: Invico Energy Yield
Fund Type: Close-Ended Limited Parnership
Fund Manager: Invico Capital Corporation
Available Units:
Class F
Class I
Investor Eligibility: Accredited investors under applicable securities law
Functional Currency: USD
Target Fund Size: US$250 million
Fund Term: Four years from Final Close, with the potential for two one-year extensions, at the discretion of the General Partner.
GP Commitment: Lesser of US$5 million or 2% of total capital commitments
Liquidity Provision: Beginning one year after the Final Close, investors seeking to exit the Fund may, on an annual basis, request that the General Partner use commercially reasonable efforts to locate a purchaser at fair market value or another price agreed upon by the selling investor and the purchaser
Distributions: Quarterly in cash, commencing immediately after close
Management Fee:
Series F Units: 1.75% of assets under administration (1.5% following investment period)
Series I Units: 1.5% of assets under administration (1.25% following investment period)
Hurdle Rate: 8%
GP Carried Interest:
Series F Units: 15% above hurdle
Series I Units: 12% above hurdle
Tax Treatment: For information on the tax treatment of Invico’s energy assets, please contact us.
Please refer to the Fund Facts for additional information and disclosures.
Resources
Latest Energy News & Insights
Stay informed with the latest news, insights, and updates on Invico Energy.
How Canadian Energy Funds Manage Commodity and Currency Risk
Learn how energy fund managers use commodity and FX hedging to manage volatility, support cash
How Invico’s Energy Assets Are Valued
A detailed look at energy asset valuation, including 3Con price decks, DCF analysis, and commodity
Geopolitics, Oil Markets, & the Rising Importance of North American Energy Supply
Recent geopolitical developments in the Middle East have once again placed global energy markets at
Rob King Joins Invico Capital Corporation as Executive Vice President, Energy Investments
Invico Capital Corporation is delighted to announce the appointment of Rob King as its new
How Canadian Energy Funds Manage Commodity and Currency Risk
Learn how energy fund managers use commodity and FX hedging to manage volatility, support cash
How Invico’s Energy Assets Are Valued
A detailed look at energy asset valuation, including 3Con price decks, DCF analysis, and commodity
Geopolitics, Oil Markets, & the Rising Importance of North American Energy Supply
Recent geopolitical developments in the Middle East have once again placed global energy markets at
Rob King Joins Invico Capital Corporation as Executive Vice President, Energy Investments
Invico Capital Corporation is delighted to announce the appointment of Rob King as its new
WHAT
What Are Royalty &
Non-Operated Working Interests?
Royalty and non-operated working-interest investments are the two primary asset types within Invico Energy. While both provide direct exposure to producing oil and gas assets, they differ in their relative valuation and in the participation in production revenues, operating costs, capital obligations, and development upside. By investing across both asset types, the Fund maintains a flexible investment approach that balances current income, risk management, and long-term value creation.
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How
How to Invest
Invico offers flexible investment options for both institutional and individual investors.
Institutional Investors & Registered Investment Advisors
Connect with our sales team to learn more about incorporating Invico’s alternative investment funds into your portfolio.
Individual
Investors
Speak to your wealth manager about investing in Invico Energy Yield and other Invico funds.
Offering
Documents
Contact us to schedule a call with our energy team to learn how you can gain access to Invico Energy.
FAQ
Frequently Asked Questions
What is the Fund’s investment strategy?
Invico Energy Yield (“Invico Energy” or the “Fund”) is focused on generating current income and long-term capital appreciation through direct investments in oil and gas assets across Canada and the United States. The Fund primarily invests in mineral titles, royalty interests, and non-operated working interests, targeting producing assets and opportunities with additional development potential.
What are royalties and non-operated working interests?
Royalties and non-operated working interests are two ways of participating directly in the economics of oil and gas production without operating the wells.
A royalty interest entitles its owner to a portion of the revenue generated from oil and gas production, generally without responsibility for the operating, development, and abandonment costs associated with the underlying wells.
A non-operated working interest provides an ownership interest in an oil and gas property, with the owner receiving a proportionate share of production and revenue while also contributing a share of operating, development, and abandonment costs. In both cases, a third-party operator is responsible for managing day-to-day operations.
Does the Fund invest in energy companies or directly in energy assets?
The Fund invests directly in oil and gas assets rather than in private- or publicly-traded energy companies. This provides direct participation in the production and economics of the underlying assets rather than exposure to a company’s broader corporate strategy, capital structure, or equity market performance.
Why invest directly in oil and gas assets?
Direct energy investments can provide a source of current income, capital appreciation potential, and diversification from traditional stocks and bonds. They also allow the Energy Investment Team to select individual assets based on their underlying economics rather than investing in an energy company as a whole.
Where does the Fund invest?
The Fund invests across Canada and the United States and is not restricted to a single operator or basin. The initial portfolio includes assets in the Eagle Ford basin in Texas and the Powder River basin in Wyoming, with future investments expected to focus on select established energy basins across North America. For more information on target investment locations, please see the portfolio information above.
Why does the Fund invest in both Canada and the United States?
A cross-border mandate provides access to a broader opportunity set across two established energy-producing markets. Differences in mineral ownership, basin characteristics, commodity exposure, and transaction markets allow the Energy Investment Team to evaluate opportunities across North America and deploy capital selectively.
How does Invico source and select energy investments?
Invico sources potential acquisitions through its network of operators, energy companies, mineral and royalty owners, intermediaries, and other industry relationships across Canada and the United States. Each opportunity undergoes a disciplined evaluation of factors such as operator experience and financial strength, existing production, operating costs, commodity mix, reserve life, development potential, expected decline rates, future capital requirements, and expected cash flows.
Is the Fund restricted to certain operators or energy basins?
The Fund is not limited to a single operator or basin. Its mandate provides flexibility to invest across select oil and gas regions in Canada and the United States.
Does the Fund have investments identified for deployment of investor capital?
The Fund will begin with an existing seed portfolio providing immediate exposure to approximately 800 boe/d of U.S. production in the Eagle Ford and Powder River basins.
How does the Fund generate returns?
The Fund seeks to generate returns through cash flow from oil and gas production and potential capital appreciation. Additional value may be created through new drilling and development activity, production additions, changes in asset economics, and the eventual disposition of investments.
If oil and gas are finite resources, how can the Fund generate capital appreciation?
Although production naturally declines over time, energy asset values are also influenced by factors such as commodity prices, future development activity, expected recoverable reserves, and market conditions. Undeveloped drilling locations can also add production and cash flow as operators develop the underlying acreage.
How can global energy market disruptions affect the Fund?
Global supply and demand, geopolitical events, and production disruptions can affect commodity prices and, in turn, the Fund’s cash flows and asset values. These conditions can create both risks and investment opportunities for the Fund.
How does the Fund manage commodity price and currency risk?
The Fund manages risk through portfolio construction and diversification and may also use hedging strategies where appropriate. The Fund is permitted to hedge commodity price, interest rate, currency, and other risks associated with its investments.
Does the Fund use financing?
Yes. The Fund may use financing for investment and liquidity management purposes. Total borrowings are limited to the lesser of 40% of aggregate capital commitments and 3x the Fund’s EBITDA or another applicable cash flow metric established in the Fund’s governing documents.
How are the Fund's energy assets valued?
Invico’s energy investments are valued using a disciplined, reserve-based framework founded on independent engineering analysis and forward-looking commodity price assumptions. Central to this methodology is the 3 Consultants’ Average (“3Con”) price deck, which establishes long-term pricing expectations and underpins the valuation of underlying reserves.
At the heart of the approach is a reserve evaluation, which is audited by a third-party engineering firm in accordance with National Instrument 51-101 and The Canadian Oil and Gas Evaluation Handbook. Learn more about the valuation process here.
How will existing Invico energy assets contributed to the Fund be valued?
The seed portfolio assets will be valued at fair market value. The initial seed portfolio assets will be acquired from Invico Diversified Income Fund (“IDIF”), an Invico-managed fund. IDIF will engage an independent third-party reserve evaluator to assess the value of the assets, and the transaction will require approval from IDIF’s Independent Review Committee.
Future acquisitions from Invico, an affiliate, or another fund controlled by the General Partner will be subject to the Fund’s related-party transaction provisions, including approval by the Limited Partnership Advisory Committee (“LPAC”) or the required investor approval.
How will the Fund be able to make distributions early in its life?
The Fund will begin with an existing portfolio providing exposure to approximately 800 boe/d of U.S. production, providing an immediate source of underlying cash flow. The Fund intends to make quarterly cash distributions from amounts available for distribution, subject to the Fund’s expenses, capital requirements, and liquidity needs.
What is the difference between the Fund's Initial Closing and Final Closing?
The Initial Closing is the Fund’s first closing for investor subscriptions. Following the Initial Closing, the Fund may continue to accept investor commitments through subsequent closings for up to 18 months (unless the Final Closing is otherwise extended for up to an additional six months per the consent of the Limited Partnership Advisory Committee (“LPAC”)). The last of these closings is the Final Closing, after which the Fund’s investment period and four-year term begin.
What is the Fund's investment period and term?
The Fund has an 18-month investment period following the Final Closing. Following the Final Closing, the Fund has a four-year term, with the potential for two additional one-year extensions.
What happens to the Fund's investments at the end of its term?
At the end of the Fund term, the General Partner will seek to provide investors with full liquidity or may offer a continuation vehicle for investors wishing to remain invested. This provides flexibility to consider the appropriate realization strategy based on the portfolio and prevailing market conditions.
What liquidity is available to investors during the Fund's term?
Invico Energy is a closed-end fund and should be viewed as a long-term investment. Beginning on the first anniversary of the Final Closing, investors may annually request that the General Partner use commercially reasonable efforts to identify a purchaser for some or all of their units. However, there is no guarantee that a purchaser will be identified or that a sale will be completed.
What experience does Invico have investing in energy assets?
Invico has over 20 years of experience investing directly in North American energy assets, including mineral title, royalty interests, and non-operated working interests in Canada and the United States. The Fund builds on this experience through a dedicated strategy focused on acquiring and managing a diversified portfolio of energy assets.
What distinguishes Invico Energy Yield LP's investment approach?
The Fund combines royalty and non-operated working interests within a single North American energy strategy, providing flexibility to invest across different ownership structures, commodities, geographies and producing basins. The Fund also begins with an existing portfolio of producing assets, providing an initial source of cash flow while additional capital is deployed.
Does the Fund have investor oversight?
Yes. The Fund will have a Limited Partnership Advisory Committee (“LPAC”) consisting of independent representatives of its limited partners. The LPAC provides oversight on matters including actual or potential conflicts of interest and valuations.
How can investors track the Fund's performance?
Investors will receive quarterly operating statements and portfolio updates, audited annual financial statements, and an audited annual reserve report.
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Let’s Connect
Interested in learning more about Invico Energy Yield? Contact our team for more information.
