Though competition is growing among debt and equity providers, it isn't changing the way some financiers select and grow their portfolio companies, according to panelists at COSCO's Private Capital for Energy conference in Houston. "I don't play the game any differently," said John Howie, vice president, E&P capital, Goldman, Sachs & Co. "The game is just riskier and we have to play it a little faster." The conference had a golfing theme. Russell Sherrill, managing director, AIG Financial Products LLC, said, "When we make an investment, it will be with somebody we trust...We're happy to share a disproportionate share of the upside but we want that upside protected. "We're also a strong capital provider, and when we partner with a company we like to be complementary. If we're not necessary in a partnership, we're not afraid to say, 'You don't need us.'" David Kittay, president, Promethean Asset Management LLC, said, "We like realism. The best situations result from frank discussions with management about capital allocation, the things that can go right and the ones that can go wrong. How rational they are can give you a good idea about their chances of success." In addition to a great management team with attractive assets and repeatable plays, Todd Overbergen, director, Laminar Direct Capital LP, is looking for a team "with a great caddy-good teams always come in pairs." On the subject of being a debt issuer, Frank Weisser, managing director, GasRock Capital LLC, said, "We have an unusual perspective on mezzanine debt. We don't sit on your board or control the company. While debt financing is more labor-intensive, we're more like a working-interest partner than a lender." The group agreed that investors' interests have evolved. Overbergen said, "There is more competition in the energy space but not all of the players really know the space or the cycles. The products we've been putting out have leaned more toward equity, and we're seeing more opportunities to finance infrastructure and services." The cost of capital also has an effect on companies, and the cost of capital fluctuates, said Kittay. "The teams that will do well through the cycles will understand cost of capital." Before jumping on board with any capital provider, make sure both sides can survive the long haul, Weisser said. Kittay added, "Understand your business and its challenges. Investors are investing to make money. Remember this because they'll always want to take you out for beer when times are good." At the end of the day, there will always be room for the solid players, Howie said. "Some players on the course haven't been playing for very long. When the first golfer is electrocuted during a thunderstorm, a number of players are going to exit the game."