Global alternative asset manager Carlyle Group on Monday said that it will invest up to $500 million in equity in UK-based Magna Energy, an upstream oil and gas company founded by oil industry veterans Mike Watts and Jann Brown.

The investment will come from Carlyle International Energy Partners (CIEP), a fund that focuses on oil and gas exploration and production, midstream, and refining and marketing in Europe, Africa, Latin America and Asia.

Magna is targeting the building of acreage positions in the Indian subcontinent, with the objective of creating a full-cycle oil and gas company through acquisitions and local licensing rounds.

Jann Brown and Mike Watts, Magna co-founders and joint CEOs, said; “We’re delighted CIEP has agreed to support the Magna leadership team with a significant equity investment as we seek to build our business across South Asia – a region we both know well. We believe there is strong growth potential in countries such as India, Bangladesh and Myanmar, which seek to grow their local energy markets.”

Magna’s primary focus will be development and production with a secondary focus on exploration. The company’s expertise combined with additional capital and industry knowledge from Carlyle will help further develop the local oil and gas industry across the Indian subcontinent, leading to greater energy security, job creation and economic growth, the Carlyle statement said.

Marcel van Poecke, Managing Director, and Head of CIEP, said: “We are pleased to partner with Jann Brown and Mike Watts, who have a long history of success in the Indian subcontinent.

CIEP will provide capability and support through its global energy platform as we seek to participate in the economic growth of India and neighbouring countries.

Our investment will help fund Magna’s development and production plans allowing it to focus on cash generative and organic growth opportunities in the oil and gas sector across the subcontinent.”