Black Bay Energy Capital LLC recently announced the closing of its oversubscribed second fund with total commitments of $210 million, exceeding its $200 million target.
“The Black Bay team is extremely grateful for the confidence placed in us by our investors. We believe that our focused approach within the underserved lower-middle market energy sector will generate attractive risk-adjusted returns for our Fund investors and portfolio company partners,” Michael LeBourgeois, managing partner at Black Bay, commented in a company release on May 11.
Black Bay is a private equity firm based in New Orleans focusing on investments in the North American energy sector requiring up to $30 million of equity capital. In particular, the firm said it invests in companies led by talented entrepreneurs offering proven, next-generation products and services that help improve economics, efficiency and safety for energy producers across the hydrocarbon value chain.
“Black Bay is solely focused on partnering with talented management teams that are bringing next-generation solutions to the energy industry,” said Guy Cook, partner at Black Bay. “Underinvestment in traditional forms of energy has limited the sources of capital for entrepreneurs with compelling businesses.”
To date, Black Bay has completed two investments from its second fund, Black Bay Energy II LP. These include:
- Piñon Midstream—a midstream services provider focused on the gathering, treatment, and redelivery of sour gas. Piñon removes and sequesters hydrogen sulfide and CO₂, unlocking constrained, prolific oil and gas resources in the eastern Delaware Basin.
- Advanced Industrial Devices (AID)—a provider of high-performance electric motor automation and control solutions to the energy and industrial sectors. AID’s offering includes highly engineered and customized variable frequency drive control systems for clients who are electrifying and instrumenting their compression, artificial lift, saltwater disposal and industrial pump operations.
“The energy industry is under pressure to increase shareholder value—but needs to do so in a more environmentally and socially responsible manner—and Black Bay is investing in companies that help the industry deliver on those objectives,” added Tom Ambrose, partner at Black Bay.
Latham & Watkins LLP, led by partner Edward D. Nelson, served as fund formation counsel. Black Bay did not engage a placement agent for formation of its second fund.
2022-11-29 - Meanwhile, the first days of December bring opportunities that may upend oil economies around the world as Russian sanctions kick in and OPEC reconvenes in Vienna.
2022-11-15 - “The approaching EU embargoes on Russian crude and oil product imports and a ban on maritime services will add further pressure on global oil balances, and, in particular, on already exceptionally tight diesel markets,” the IEA said.
2022-10-04 - Oil production and exports regained their footing in the third quarter, helped by Iran’s supplies of condensate and crude to state-run oil company PDVSA, and deliveries of Venezuelan heavy crude and fuel oil to Iranian state companies.
2022-10-24 - China's September crude imports were 9.79 MMbbl/d, 2% lower than they were at the same time last year.
2022-09-20 - The coming end of SPR oil releases by the Biden administration could shift market dynamics again in a year of high volatility following Russia’s invasion of Ukraine in February.