Simmons Parallel Energy Fund is on the hunt for new investments. The co-investment private equity fund, wholly focused on the energy sector, is now halfway through its lifecycle and is seeking to invest a further GBP17 million in the next two years.
With its investments in Xodus Group and Glacier Energy Services completing recently, the fund has now invested over GBP16 million since its creation in 2008.
Set up to make minority co-investments across the energy sector, the fund is searching for new opportunities in oilfield services, technology, development and production companies as well as technologies that enable the adoption of a range of alternative energy solutions.
Simmons Parallel Energy typically invests between GBP2 million and GBP5 million alongside other investors. The fund brings 35 years of energy investment banking experience and an extensive network from its parent, Simmons & Company International, to benefit investee companies and investment partners.
Frank Summers, head of Simmons Parallel Energy Fund, says: “Ideally we are looking for oilfield service and alternative energy companies in the Eastern Hemisphere, head-quartered in Europe with global operations who have ambitious growth plans and significant growth potential. In terms of types of deals, we continue to focus on management buy-out and buy-ins and growth capital opportunities where we can co-invest with other private equity funds and industry investors.
The aim of the fund is to create value within portfolio companies providing advice and insight appropriate to the investee companies and co-invest partner by harnessing Simmons’ energy investment banking experience and networks. The fund is already creating value with all of the investee companies achieving their growth targets.
Summers added: “There are many owner managers of companies in the energy sector looking for capital to either grow organically or through acquisition or develop technology to take them to the next stage. Private equity investment will help them fast-track that growth and build a more valuable business. Our approach is to invest in management teams and support them to deliver their vision.”
The fund has invested in independent energy consultancy, Xodus Group, Electro Flow Group a leading designer and manufacturer of hazardous area instrumentation, monitoring and control systems for the global oil and gas industry; Glacier Energy Services a newly formed oilfield services group comprising established manufacturing businesses Roberts and Wellclad; and Red Spider Technology, a technology company providing products to the well intervention and completions markets.
