FLC Credit Partners’ private credit fund has provided a term loan and preferred equity to Goodnight Trail Resources (Goodnight Trail) to fund the purchase of its assets by existing operator RedBud E&P, Inc (RedBud).
Goodnight Trail Resources is an exploration and production company focused on producing, high cashflow conventional assets in the eastern shelf of the Midland Basin. This new financing will allow the existing operator of the assets, RedBud, to purchase the assets from their current owner to continue their low-decline production and pursue selected development opportunities that Goodnight believes are low cost and low risk.
“We have gained deep knowledge of the Goodnight Trail assets via our operatorship, and the investment by FLC’s credit fund will allow us to take the assets to the next level, now as the owner,” says Tom Kaetzer, President and CEO of RedBud. “This deal is representative of the great opportunities that we’re seeing in smaller conventional assets of this type, and we look forward to continuing to work with the team at FLC as partners to make the most of this opportunity and perhaps others in the future.”
“This investment is another example of how our unique model, leveraging the Intellectual, Relational and Financial Capital of our leading family limited partners, can be deployed in the credit space to support family- and entrepreneur-owned businesses,” says Hendrik Jordaan, Chairman and Co-Founder of FLC Credit Partners. “As we seek to provide top returns to our investors, we’re attracted to Tom’s track record of success.”
“In our work with Tom and his team at RedBud, we’ve been incredibly impressed by their acumen, discipline and execution,” says Peter Eschmann, Partner & Managing Director of FLC Credit Partners. “These are exactly the type of entrepreneurial operators that we believe have high cashflow, low risk, producing assets that we seek out in the energy sector.”
The investment marks the second in a series of inaugural investments by FLC’s private credit fund since its March 2021 launch as a part of the Family Legacy Capital platform. FLC Credit Partners addresses the capital needs of family and entrepreneur-owned businesses through creative private credit solutions. The firm understands the dynamics inherent in these types of companies given that its investor base is comprised exclusively of leading family offices.
FLC Credit Partners seeks primary and secondary opportunistic private credit investments, with an emphasis on secured loans, but also select mezzanine and structured equity solutions. FLC’s private credit fund targets USD10 million to USD100 million transactions to fund re-financings, leveraged buyouts, add-on acquisitions, recapitalisations, growth/working capital, “rescue” capital, DIP loans and exit finance.
