Montego Minerals Closes Montego Capital Fund 4, Fully Subscribes 29th 1031-Exchange Portfolio
Montego Minerals, a manager of oil and gas royalties and mineral rights, announced the final close of Montego Capital Fund 4, LP, i.e., MCF4, which is filed with the U.S. Securities and Exchange Commission as Montego Capital Fund 4 Ltd.
The company also fully subscribed Driftwood Minerals, its 29th portfolio and latest 1031 exchange-eligible offering. The closings come amid rising investor demand for commodities and hard assets, as advisers and clients seek durable income, diversification, and long-term purchasing-power protection.
MCF4, the firm’s fourth income and growth fund, was launched in March 2025 with a maximum offering size of $75 million. Structuring the fund at that level allowed it to engage in due diligence with larger counterparties that require minimum portfolio scale, regardless of the ultimate close size, according to Montego Minerals.
MCF4 encompasses 4,341 wells across more than 340,000 gross acres and is operated by 12 Tier 1 operators. With 51 wells currently being drilled, active permitting underway, and an estimated 686 additional wells to be added at no cost to investors, the portfolio offers near-term cash flow and long-term development upside. MCF4 delivers diversified exposure to oil and gas royalties and mineral interests across the Permian Basin and other top-tier U.S. resource plays without, according to the company, the capital intensity or operational risk of drilling.
The fund closed at $17 million, which more than tripled the size of the third Montego Capital Fund and is roughly four times larger than the first and second Montego Capital Funds, according to the company. Montego said the larger fund size provides increased diversification relative to prior offerings.
According to the company, each of the prior Montego Capital Funds has generated lifetime annualized returns of 23.3% for investors. A fifth Montego Capital Fund is expected to launch later this quarter.
Montego said that Driftwood Minerals underscores ongoing investor interest in defensive, income-generating real assets. The portfolio encompasses approximately 82,691 gross acres across Texas and Louisiana, spanning 170 properties operated by Diamondback, Exxon, ConocoPhillips, EOG, Comstock, and Aethon. The portfolio includes 512 producing wells, 74 DUCs, 14 active permits, and well growth exceeding 223 additional wells, supporting both near-term cash flow and longer-term growth.
“The successful close of these offerings highlights how advisers are increasingly incorporating royalties and minerals alongside precious metals, and other hard assets in client portfolios,” said Rhett Gist, principal at Montego Minerals. “Our focus remains on acquiring high-quality mineral real estate with strong operators, predictable cash flow, and long-duration upside.”
In the fall of 2025, the company fully subscribed Flatiron Minerals LLC, its 28th 1031 exchange-eligible portfolio after raising $22.3 million from accredited investors.
Montego Minerals focuses exclusively on acquiring mineral and royalty interests beneath existing leases. Operators bear all drilling and operating costs, while Montego Asset Management manages collections and distributes royalty income to investors monthly.
Montego Minerals is a multigenerational family office of petroleum engineers and geologists that has evaluated and purchased minerals and royalties in the Permian Basin for the last 50 years.
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