Apollo invests $500 mln in CSV Midstream

CSV Midstream has secured $500 million in funding from Apollo Global Management. According to the firm, the capital will be used to construct and operate midstream facilities in the Western Canadian Sedimentary Basin. Based in Calgary, CSV Midstream is a provider of midstream solutions.

PRESS RELEASE

CALGARY, Alberta & NEW YORK, May 28, 2014 (BUSINESS WIRE) — CSV Midstream Solutions Corporation (“CSV Midstream” or the “Company”) has entered into a strategic partnership with funds affiliated with Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”), to pursue the construction and operation of midstream facilities in the Western Canadian Sedimentary Basin. Funds managed by Apollo have provided CSV Midstream with an equity commitment of $500 million to fund the Company’s business plan.
CSV Midstream is well positioned to capitalize on the compelling growth opportunities in the natural gas and natural gas liquids (“NGL”) industry. They offer practical, sustainable midstream solutions to help producers deal with increasingly restrictive processing capacities. Led by a proven, experienced management team, CSV Midstream’s primary focus is upstream development—the engineering, design, construction, operation and management of assets, including sweet and sour gas processing, liquids handling and fractionation, and gas gathering and transmission pipelines—but with a passion to advance strategic energy solutions.
“We’re very fortunate to have the backing of Apollo, with access to their deep experience in natural resources,” states Daniel Clarke, founder and CEO of CSV Midstream. “Our vision is to not only deliver exceptional expertise within the natural gas infrastructure sector, but also to work closely with all involved—industry and community—to create shared value up and down the line.”
CSV Midstream will utilize innovative business models, such as guaranteed cost assurance and shared risk, to help producers manage growth and sustainability. Mr. Clarke explains, “We believe our shared-risk model, with capital risk sharing and fee assurances, will provide our customers with reliable expenditure budgets and schedules. In addition, we feel that including internal and external stakeholders in the scope of operations is essential for today’s energy and environmental awareness. We want to grow operations through best practices for all stakeholders.”
Rakesh Wilson, a Partner of Apollo, comments, “This strategic partnership with CSV Midstream is a great example of Apollo’s approach to partnering with proven management teams and providing the needed capital and other resources to help launch profitable new businesses in attractive markets. Over the years, the CSV Midstream team has developed valuable relationships and has built a solid track record of project development in the Canadian midstream sector.”
About CSV Midstream Solutions Corporation
CSV Midstream is a Calgary-based company offering full services for complete midstream solutions. With a vision to advance midstream, they provide innovative, sustainable strategies in the engineering, design, construction, operation and management of natural gas and NGL assets, including sweet and sour gas processing, liquids handling and fractionation, and gas gathering and transmission pipelines. CSV Midstream’s primary focus is the developing natural gas energy industry in the Western Canadian Sedimentary Basin. For more information about CSV Midstream, please visit www.csvmidstream.com .
About Apollo Global Management, LLC
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Toronto, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. Apollo had assets under management of approximately $159 billion as of March 31, 2014 in private equity, credit and real estate funds invested across a core group of nine industries, where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.agm.com .

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