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Tailwater Capital closes Energy Fund II at USD650m

Energy-focused private equity firm Tailwater Capital has closed its third fund, Tailwater Energy Fund II LP at USD650 million. 

Since launching in 2013, Tailwater has raised more than USD1.4 billion across three funds, Tailwater Energy Fund I, Tailwater E&P Opportunity Fund and the recently closed Fund II. The team will leverage its considerable experience to invest Fund II across the midstream value chain and seeks to extend its successful track record.

"We're grateful to have the opportunity to continue investing on behalf of our supportive investor base, and we look forward to working with our new limited partners," says Edward Herring, Managing Partner of Tailwater Capital. "We believe our deep sector expertise will enable us to capitalise on the attractive fundamentals of the domestic energy market utilising our disciplined, solutions-oriented investment approach."

Tailwater is led by founding partners Herring and Jason Downie, who have worked together for 16 years and executed 35 transactions representing USD11 billion of transaction value.  Launched in early 2014 with a target of USD400 million, Fund II had its final close on December 5, 2014 at its hard cap.

"We will continue partnering with talented management teams to pursue platform investments in this dynamic sector," says Downie, Managing Partner of Tailwater. "The Tailwater team continues to grow, and we are excited to be making new investments at a time in which midstream infrastructure is in such acute need."

Capstone Partners, LP served as the placement agent for Fund II and Weil, Gotshal & Manges LLC provided legal counsel.

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