Montego Minerals Targets $50M With Fifth Royalty Fund
Montego Minerals, a manager of oil and gas royalties and mineral rights, has launched its fifth income and growth offering, Montego Capital Fund 5, LP. The $50 million offering, also known as MCF5, is designed to provide accredited investors with direct exposure to a diversified portfolio of producing and non-producing royalty assets across the most active energy basins in the United States.
The fund, also known as MCF5, targets acquisitions in the Permian Basin, spanning West Texas and southeastern New Mexico; the Powder River Basin in southeastern Montana and northeastern Wyoming; and the Haynesville Shale, spanning northwestern Louisiana, East Texas and southwestern Arkansas.
The fund structure allows investors to participate in the oil and gas sector without drilling obligations, capital expenditure requirements or operating risk, as all development costs are borne by third-party operators.
Montego Asset Management will oversee acquisition, management and distribution of royalties to investors.
“Montego Capital Fund 5 represents the continued evolution of our investment strategy, pairing high-quality producing assets with a deep inventory of future development opportunities,” said Cutler Gist, principal at Montego Minerals. “With over three generations of technical expertise and a disciplined acquisition process, we are focused on building a portfolio that delivers both durable income and long-term value for our investors.”
MCF5 is structured as a zero-leverage portfolio, emphasizing a disciplined approach to risk management and long-term, risk-adjusted returns. The fund intends to make quarterly distributions and is supported by engineering analysis indicating more than 35 years of remaining production life across the underlying assets.
Montego said it manages more than $466 million in assets under management, more than 1.6 million gross acres and approximately 14,800 producing wells. The company reported 15 managed exits and 27 closed offerings.
Last month, AltsWire reported on the final close of Montego Capital Fund 4, LP, i.e., MCF4, as well as the full subscription of Driftwood Minerals, its recent 1031 exchange-eligible offering. The closings came amid rising investor demand for commodities and hard assets, as advisers and clients seek durable income, diversification, and long-term purchasing-power protection.
According to the company, MCF5 seeks to generate revenue from a diversified mix of oil, natural gas, and natural gas liquids, or NGLs, while also offering potential tax advantages through cost and percentage depletion strategies, subject to individual investor circumstances.
The offering also incorporates the company’s portfolio construction and exit strategy, allowing for potential liquidity events after year three, while maintaining long-term exposure to producing assets.
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 50 years.
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