Petroleum Equity, a new private equity firm focused on the oil and gas market, is preparing to launch its first fundraising effort in the second quarter of this year, aiming to raise $250 million to $350 million.

The London-based firm, which was set up in 2012 by a former private equity investor with Barclays Capital Natural Resources Principal Investment team and three former executives from Anglo-Dutch energy giant Shell, is working with private equity advisory firm Rede Partners to raise the fund, according to two people familiar with the situation.