Sat, Jul 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Private Equity Strategies

Sector View: Energy Focused Tailwater Capital Spins Out of HM Capital

Monday, May 20, 2013

By: Bailey McCann, Private Equity Strategies

Dallas-based, Tailwater Capital has successfully launched, and raised its first fund - Tailwater 1. Tailwater partnered with Landmark Partners to complete the secondary purchase of HM Capital's legacy energy portfolio, and is making investments that follow with HM Capital's approach. Tailwater principals Jason Downie and Edward Herring, have been a team for over 14 years, including work with HM Capital, and were involved with the legacy investments that are part of Tailwater 1.

Going forward, Tailwater will focus on investing in the energy industry with a primary focus on investments within the midstream and upstream sectors. The portfolio includes BlackBrush Oil & Gas, TexStar Midstream Services and SunTerra Well Services. During their tenure with HM Capital, Downie and Herring were responsible for the sourcing of these investments as well as the oversight of each company's performance through representation on each company's board. Both men spoke with Private Equity Strategies about the launch of their firm and new fund.

"We feel like US infrastructure and capital spend to get hydrocarbons to the market will continue to have an opportunity for returns over the next several years," Downie said. "We think it is a great time to be invested in oil and gas."

"We were part of the HM Capital team for 14 years, so we are very familiar with Landmark Partners as an LP, they have been involved since day one, and this is very much an extension of what we were already doing together," Herring explains. Herring and Downie have worked with Landmark Partners on investments in this space since the early 2000s, predating involvement with these portfolio companies.

Tailwater and HM Capital were represented by a team from Weil, Gotshal & Manges LLP led by partner Rodney Moore and Landmark Partners was represented by a team from Kirkland & Ellis LLP led by partner Michael Belsley.

"With Tailwater 1 we are bringing new capital to these investments, and are already almost 80% invested in our portfolio companies," Downie explains. "We are looking at a Tailwater 2 fund for calendar year 2014."

Investments will be focused on oil and gas companies in the US and Canada with an average bite size of $50-100m. As a team, the managing partners have invested over $1bn in equity capital, in the sector.

 
This article was published in Opalesque's Private Equity Strategies our monthly research update on the global private equity landscape including all sectors and market caps.
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies


Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. HFR: Hedge funds post strong gains in mid-July as markets recover from Brexit losses[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted strong gains through mid-July as the equity markets continued the recovery from Brexit losses. The HFRX Market Directional Index gained +2.17% (+4.22% YTD) and the HFRX Global Hedge Fund Index gained +1.03% through mid-month (+0.19%

  4. News Briefs - Carlyle goes on trial for a financial-crisis meltdown, Private equity and venture capital outperformed public markets in 2015, Pippa Middleton gets engaged to hedge fund manager James Matthews[more]

    Carlyle goes on trial for a financial-crisis meltdown Carlyle Group co-founder Bill Conway was in court on this small island last week recounting one of the most bruising episodes in his private-equity firm’s history: the 2008 collapse of mortgage-bond fund Carlyle Capital Corp. Carlyle

  5. …And Finally - Two men fall off cliff playing Pokemon Go[more]

    From BizarreNews.com: Two men who fell from a seaside cliff north of San Diego told authorities they became distracted while playing augmented reality game Pokemon Go. Encinitas fire Battalion Chief Robbie Ford said one of the men fell about 50 feet down the bluff in Encinitas while the other man fe