Energy-focused private equity firm EIV Capital (EIV) has held the final closing of its second fund, EIV Capital Fund II, with total committed capital of USD267 million, surpassing the fund’s USD200 million target.
Fund II will focus on making growth investments primarily in midstream and related oilfield service energy companies.
After receiving 100% participation from limited partners in its first fund, EIV launched its institutional fund raise for Fund II in June 2014 and completed the raise in six months; attracting a diverse base of limited partners providing strong support for EIV’s midstream focus.
“Our inaugural fund’s strong performance and the continued support from our initial partners provided EIV with the momentum it needed to have such a successful fund raise,” says Patti Melcher, Managing Director of EIV. “We are tremendously excited and grateful for our new partners’ support and believe the current investment environment will leverage our team’s operating and financial expertise to identify and capitalise on opportunities to partner with great management teams seeking to grow through this cycle.”
EIV will continue to execute on its successful strategy of partnering with entrepreneurial management teams operating companies in less efficient and undercapitalised markets. Fund II will focus in three areas: (i) Midstream (strategically placed growth infrastructure projects focused on gathering, processing, distribution, storage and marketing of oil, natural gas and refined products); (ii) Related Services (crude oil trucking, equipment leasing, oilfield water handling and other related services, flare management); and (iii) Expanded Natural Gas Uses (small-scale natural gas fired cogeneration projects, LNG as a transportation fuel and landfill gas recovery).
Fund II has already successfully partnered with two portfolio companies.
Melcher says: “We believe being flexible with our capital and providing ongoing support to entrepreneurial teams provides management with the best chance of success in a rapidly evolving commodity market.”
“EIV’s track record and midstream operating background attracted a top-tier list of sophisticated investors for its first-time institutional fund in a process that took less than six months,” adds Terry Crikelair, Managing Partner of Champlain Advisors, LLC who served as exclusive placement agent. EIV’s limited partners include a range of sophisticated
