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Transaction Type
Hedges
After Investment
Finding Non-Marketed
Relationship Deals
Returning Cash Flow
to Investors
Sell After
~5 Years
- Ability to hedge-in a robust base return, with substantial downside protection
- Pursuing new financings in areas with little access to current capital markets
- Pursuing financings at valuations supported by producing reserves and current cash flow
- Non-marketed relationship deals
- Niche transactions in the distressed and special situations space
- Transactions where the majority of overall invested capital is returned through asset cash flow over a medium-term hold period
Transaction Size
Typical Fulcrum Investment Of
$10 – $25M
with exceptions
Transaction Values Typically Up to
$100M
for initial platform
Opportunity Set
Underserved space in lower middle market oil and gas finance |
Capital intensive industry given asset heavy nature of the business |
Large wave of M&A, debt maturities, and capital requirements on the horizon |
Strategic situations where flexible capital solutions are differentiated and existing capital providers are too large and over-specialized |
Denver is an underserved market for energy private equity capital relative to the number of oil and gas companies in the Rocky Mountain region |
Geography
- Top-tier oil and gas basins that are economic in a lower price environment
- On-shore assets in North America
Current Investment Areas
Other Key Criteria
Production and cash flow support valuation
Structuring downside protection through commodity price hedging, amortization mechanisms, covenant protections, etc.
Quality management teams
Creative deal structures
Potential for operational enhancements at the asset level