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US Capital Advisors launches private energy credit focused asset management business

US Capital Advisors (USCA) has formally launched its third division, USCA Asset Management. The firm has simultaneously launched its flagship energy investment vehicle, the USCA Private Energy Credit Fund, which will provide direct loans and other bespoke credit solutions to higher quality, lower middle market-sized private energy companies in need of growth capital.

Paul Tice joins USCA as a Senior Managing Director and Head of the Energy Capital Group at USCA Asset Management. Tice will be overseeing the firm's private energy fund business and will be the manager of the firm's new Private Energy Credit Fund. Tice will report directly to USCA's two Managing Partners, David King and Patrick Mendenhall.

Tice was most recently with BlackRock in New York, where he was a Managing Director and head of private energy investments for the firm's Credit business and Americas Fixed Income division. Paul brings over 20 years of energy investment experience to the firm, having been a top II-ranked sell-side energy research analyst, senior investment officer of a proprietary trading business within a large investment bank, and a co-founder and COO of a multi-billion dollar credit-focused hedge fund. Tice is currently working out of the firm's Houston headquarters office and will be based in the firm's newly-established New York office over the next few months.

Kevin Craig also joins USCA as a Director in the Asset Management division where he will be responsible for institutional fundraising and investor relations. Craig joins USCA from Panda Power Funds in Dallas. Craig is based in the firm's Dallas office.

"The formal launch of USCA Asset Management as USCA's third business division marks an important step in the continued growth and evolution of the firm," said David King, USCA Managing Partner. "We expect Asset Management to be a material value driver for our clients and shareholders, both on a stand-alone basis as well as through a number of significant synergies across our existing platform."

"Smaller private energy companies are finding it increasingly difficult to access bank credit and other traditional forms of financing to grow their businesses due to the significant decline in commodity prices and increased volatility in the public capital markets over the past year," added Paul Tice. "We believe there is now a pressing need for new sources of private capital to allow middle market energy companies to proceed with their development plans and provide a financing bridge to a better point in both the commodity and credit cycles. In our opinion, this presents an opportunity for new private capital providers with investment expertise across the energy value chain, fixed income market experience and the ability to commit and deploy capital quickly."

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