Westwood Closes Second Flagship Energy Secondaries Fund with More Than $300 Million Raised

Rhea-AI Summary

Westwood Holdings Group (NYSE: WHG) closed Westwood Energy Secondaries Fund II and two co-investment vehicles with more than $300 million in commitments on Jan 14, 2026, surpassing an initial $150 million target. Since 2023 the firm has raised nearly $350 million for its energy secondaries strategy and invested over $250 million across two flagship funds and three co-investment funds. WES II deployed $200 million in energy investments in 2025 and has about $100 million left to deploy in 2026, targeting 7–12 year-old LP interests and GP-led continuation opportunities in upstream, midstream and oil-services.

Positive

• Fundraise >$300M, double initial $150M target
• Deployed $200M in energy investments in 2025
• Track record: nearly $350M raised since 2023 and >$250M invested

Negative

• Sector concentration: strategy focused on energy secondaries and continuation funds
• $100M remaining to deploy in 2026, creating deployment pressure

News Market Reaction

+2.25%

1 alert

+2.25% News Effect

On the day this news was published, WHG gained 2.25%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Assets under management: more than $18 billion WES II commitments: over $300 million Original WES II target: $150 million +5 more

8 metrics

Assets under management more than $18 billion Firm-wide AUM and advisement

WES II commitments over $300 million Capital commitments raised at final close

Original WES II target $150 million Initial capital raise target for WES II

Energy secondaries raised nearly $350 million Since launch of initial flagship fund in 2023

Capital invested over $250 million Deployed across energy secondaries and co-investment funds

LP interest age 7–12 years old Target age of limited partnership interests for WES II

2025 deployments $200 million Energy investments deployed by the Funds in 2025

Capital remaining approximately $100 million Capital remaining to deploy in 2026

Market Reality Check

Price: $18.39 Vol: Volume 16,970 is in line ...

normal vol

$18.39 Last Close

Volume Volume 16,970 is in line with the 16,831 20-day average. normal

Technical Shares at $17.76, trading above the $16.59 200-day moving average.

Peers on Argus

Peers show mixed, small moves with gains in EDF and SPE, declines in OCCI and TE...

Peers show mixed, small moves with gains in EDF and SPE, declines in OCCI and TEAF, and flat OXSQ, while WHG slipped 0.73%, pointing to a stock-specific reaction.

Historical Context

5 past events · Latest: Jan 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 12	ETF distributions	Positive	+2.0%	Announced high-rate monthly distributions for MDST and WEEI ETFs.
Dec 12	ETF launch	Positive	+3.9%	Launched YLDW ETF, expanding Enhanced Income Series platform.
Dec 08	Workplace award	Positive	-1.5%	Named to Best Places to Work in Money Management list again.
Dec 04	ETF distributions	Positive	-0.6%	Declared monthly distributions and detailed high annualized rates.
Nov 04	ETF distributions	Positive	-0.8%	Announced recurring ETF distributions and return-of-capital details.

Pattern Detected

Positive product and distribution news often saw mixed or fading price reactions, with more divergences than alignments.

Recent Company History

Over the last few months, Westwood highlighted income-focused ETFs and platform growth. Repeated announcements of monthly ETF distributions and high annualized rates, plus the launch of the Enhanced Income Opportunity ETF, underscored emphasis on yield products. Recognition as a Best Place to Work reinforced franchise strength. Price reactions showed 2 positive alignments and 3 divergences, suggesting that favorable news on products and distributions has not consistently translated into sustained share gains.

Market Pulse Summary

This announcement underscores momentum in Westwood’s alternatives platform, with WES II raising over...

Analysis

This announcement underscores momentum in Westwood’s alternatives platform, with WES II raising over $300 million, exceeding its $150 million target, and deploying $200 million in 2025. Combined with nearly $350 million raised across energy secondaries strategies, it highlights growing exposure to energy-focused secondary and continuation opportunities. Investors may watch how this capital translates into fee growth, deployment pace in 2026, and how it complements the firm’s broader income-oriented ETF and asset management offerings.

Key Terms

limited partnership, lp interests, general partner, gp led continuation fund, +4 more

8 terms

limited partnership financial

"investing in 7-12 year-old limited partnership (“LP”) interests at a significant"

A limited partnership is a legal business structure with two types of partners: at least one general partner who runs the business and bears full legal responsibility, and one or more limited partners who contribute money, share profits, and have liability capped at their investment. For investors, it matters because it separates control from financial exposure — like putting money into a store without managing it — and affects how returns, risks, taxes and transferability of ownership are handled.

lp interests financial

"7-12 year-old limited partnership (“LP”) interests at a significant discount in"

LP interests are ownership stakes in a limited partnership that give the holder a claim on the partnership’s profits and losses but typically little or no role in managing day-to-day operations. Think of owning a seat at a table where you share the dessert but don’t run the kitchen; for investors this matters because LP interests determine how income is distributed, how much influence you have, and how easy it is to sell your stake, all of which affect return and risk.

general partner financial

"in addition to general partner (“GP”) led continuation fund portfolio company"

A general partner is the person or firm that runs an investment partnership and legally represents it — they make the day-to-day decisions, choose which assets to buy or sell, and are responsible for the partnership’s obligations. Investors care because the general partner’s judgment, risk-taking and fee and profit-sharing arrangements determine both the potential returns and the level of exposure to losses; think of the GP as the ship’s captain whose skill and honesty shape the voyage’s outcome.

gp led continuation fund financial

"in addition to general partner (“GP”) led continuation fund portfolio company"

A GP-led continuation fund is a new investment vehicle organized by a private equity manager (the GP, or general partner) to buy one or more assets from an older fund so the manager can keep running them. Think of it like the same organizer opening a new shop to continue selling a few popular items: it gives existing investors a choice to take cash now or roll into the new vehicle, and it lets new investors join. This matters because it can provide liquidity and extend the time for value creation, but it can also change the risk and fee profile and raise potential conflicts of interest.

co-investment funds financial

"Secondaries Fund II, LLC and two related co-investment funds (collectively"

Co-investment funds pool money from multiple investors to directly buy stakes alongside a lead investor or fund in specific deals, rather than through broad, diversified funds. For investors this can lower fees, give more control over which companies or projects they back, and concentrate gains or losses—think of joining friends to buy one house together instead of each buying a share in a real estate company that owns many properties.

secondary market financial

"LP interests at a significant discount in the secondary market, in addition"

The secondary market is where investors buy and sell financial assets, such as stocks or bonds, after they have been initially issued. It functions like a marketplace where ownership changes hands, allowing investors to cash out or acquire investments more easily. This market provides liquidity, making it easier for people to turn their investments into cash or find new opportunities.

private equity financial

"energy private equity sponsors in mature LP portfolios and continuation funds."

Private equity involves investing money directly into private companies or buying out public companies to make them private, with the goal of improving their performance and increasing their value over time. For investors, it offers an opportunity to earn returns by helping companies grow or restructure, often requiring a longer-term commitment and a higher level of involvement than typical stock investments.

continuation fund financial

"energy-focused secondary and continuation fund opportunities. WES II’s primary"

A continuation fund is a new investment vehicle created by a fund manager to buy one or more assets from an older private investment fund, giving existing investors the option to sell their stake and receive cash or stay invested under the new vehicle while the manager continues running the asset. It matters to investors because it provides a way to get liquidity before a full exit, similar to transferring a house to a new mortgage so some owners can sell while others remain, but it also requires careful review of the sale price, fees and potential conflicts of interest to ensure fair treatment.

AI-generated analysis. Not financial advice.

• Fundraise underscores the success of Westwood’s growing alternative investments platform, which continues to scale and offers differentiated alternative products to institutional clients 
  
  

DALLAS, Jan. 14, 2026 (GLOBE NEWSWIRE) -- Westwood Holdings Group (NYSE: WHG) (“Westwood” or the “Firm”), a boutique asset management firm with more than $18 billion in assets under management and advisement, today announced the final close of Westwood Energy Secondaries Fund II, LLC and two related co-investment funds (collectively “WES II” or the “Funds”), with over $300 million in capital commitments raised. The capital raise far exceeded Westwood’s target of $150 million and reflects continued investor interest in Westwood’s energy secondaries business. Since Westwood’s launch of its initial flagship energy secondaries fund in 2023, the firm has raised nearly $350 million and has invested over $250 million across two energy secondaries flagship funds and three co-investment funds.

WES II aims to achieve attractive, risk-adjusted returns through investments in a diversified portfolio of energy-focused secondary and continuation fund opportunities. WES II’s primary focus is on investing in 7-12 year-old limited partnership (“LP”) interests at a significant discount in the secondary market, in addition to general partner (“GP”) led continuation fund portfolio company investments in upstream, midstream and oil-services companies. The Funds are designed to provide liquidity to institutional investors while partnering with best-in-class energy private equity sponsors in mature LP portfolios and continuation funds. The Funds deployed $200 million in energy investments in 2025 and have approximately $100 million remaining to deploy in 2026.

Strong Investor Demand
WES II received commitments from a diversified group of investors, including institutional allocators, RIAs, family offices and high-net-worth individuals. The final close marks a significant achievement for Westwood Holdings Group and the Westwood energy secondaries strategy, which the Firm launched in 2023.

“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,” said Brian O. Casey, Westwood’s Chief Executive Officer. “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.”

Platform Momentum
WES II is the second vintage in Westwood’s dedicated energy secondaries strategy. Westwood’s energy investment team draws from decades of experience in the energy sector, long-standing relationships with GPs and LPs and a disciplined underwriting approach.

Commenting on the energy secondaries market, Westwood’s President of Real Assets and WES II Portfolio Manager Gregory A. Reid said, “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.”

ABOUT WESTWOOD HOLDINGS GROUP, INC.

Westwood Holdings Group (NYSE: WHG) is a boutique asset management firm with more than $18 billion in assets under management and advisement, including over $3 billion in public and private energy investments. Westwood offers a diverse array of actively-managed, outcome-oriented investment strategies in public equities, private equity and fixed income strategies. For over 40 years, Westwood’s client-first approach has fostered strong, long-term client relationships due to our unwavering commitment to delivering bespoke investment strategies with a vehicle-optimized approach and unparalleled client service. Our flexible and agile approach to investing allows us to adapt to constantly changing markets, while continually seeking innovative strategies that meet our investors’ short and long-term needs.

For more information on Westwood, please visit westwoodgroup.com. 

Media Contacts:

Catherine Polisi Jones
cjones@polisijones.com

FAQ

How much capital did Westwood (WHG) raise for Westwood Energy Secondaries Fund II on Jan 14, 2026?

Westwood closed WES II and related co-investment funds with more than $300 million in commitments.

What was Westwood's initial target for the WES II fund and did they exceed it?

The initial target was $150 million; the final close exceeded that target, raising over $300 million.

How much did Westwood (WHG) deploy in energy investments in 2025 and how much remains to deploy in 2026?

The Funds deployed $200 million in 2025 and have roughly $100 million remaining to deploy in 2026.

What types of assets will WES II (WHG) invest in?

WES II targets 7–12 year-old LP interests at discounts and GP-led continuation fund and direct company investments across upstream, midstream and oil-services.

How does WES II provide value to institutional investors according to Westwood (WHG)?

The Funds aim to provide liquidity to institutional investors and partner with energy private equity sponsors on mature, cash-flowing assets.

How much has Westwood’s energy secondaries strategy raised and invested since launch in 2023?

Since 2023 the strategy has raised nearly $350 million and invested over $250 million across flagship and co-investment funds.