Sat, May 28, 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. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  2. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit

  3. Investing - Billionaire Wilbur Ross likes the look of Chinese bad loans, Hedge funds are still relevant in a diversified portfolio: 4 fundamental criteria for superior manager selection[more]

    Billionaire Wilbur Ross likes the look of Chinese bad loans From Bloomberg.com: U.S. billionaire Wilbur Ross said he’s considering investing in nonperforming loans in China, as Moody’s Investors Service said that the nation has the tools to prevent a financial crisis in the near term. I’

  4. Investing - Blackstone gives pricey Canadian energy and property thumbs down, One of the most concentrated hedge fund bets is getting crushed, Facebook is hedge funds' new tech darling,[more]

    Blackstone gives pricey Canadian energy and property thumbs down From Bloomberg.com: Canada’s energy assets are uneconomic and real-estate markets overvalued, making them less attractive for investment than in the U.S. and elsewhere, according to Tony James, president of Blackstone Group

  5. Study - Only 30% of institutional hedge fund portfolios beat the benchmark[more]

    Bailey McCann, Opalesque New York: A new study from CEM Benchmarking, an independent provider of cost and performance analysis for pension funds, shows that only 30 percent of institutional investors hedge fund portfolios beat the benchmark after fees. The study provides in depth analysis of real