Tailwater Capital LLC closed its fourth fund with $1.1 billion in total commitments—making it Tailwater’s largest fund to date, the Dallas-based private equity firm said in a March 26 release.
Since the firm’s inception in 2013, Tailwater has raised more than $3.7 billion across its funds. The team, led by founding partners Jason Downie and Edward Herring, has executed more than 100 energy transactions in the upstream and midstream sectors representing over $20 billion in transaction value.
“Raising our largest fund to date in today's energy environment is a testament to the strength of the Tailwater team and the longstanding trust our investors have placed in us to continue identifying attractive opportunities in the midstream sector,” Herring said in a statement.
Through the fund, Tailwater plans to continue its strategy of partnering with proven management teams to identify attractive opportunities in midstream infrastructure, according to the firm’s release.
Commenting on the current state of the oil market, Downie noted he expects to see “some of the most compelling buying opportunities” in many years.
“Having invested through multiple cycles, we are confident private equity will play a critical role in solving the prevailing capital constraints of the energy industry,” he said.
To date, Fund IV has committed to several new platform companies. The firm’s prior fund closed in July 2018 with total commitments of $1 billion, including a co-investment for a platform company in the fund, and has committed capital to six platform companies.
Thompson & Knight LLP provided legal counsel for Tailwater’s fourth fund.
Today’s featured 25 Influential Women in Energy honoree is Eileen Perillo, vice president of finance for unconventionals at Shell USA Co.
Analysts said the most core projects will move forward, while shorter-cycle developments will see the most dramatic investment cuts.
Oil and gas producer Cairn Energy on March 27 reduced investment plans by about a fifth, following the fall of oil prices to less than $30 per barrel.