American Securities has invested an undisclosed amount to help launch Delphi Midstream Partners, a firm that will acquire and invest in up to $2 billion of midstream energy sector companies and assets. Delphi’s chief executive Thomas Karam previously was president & COO of Southern Union Co., while its senior vice president Michael Walsh was a co-founding partner of Highstar Capital.
Delphi Midstream Partners, LLC (DMP), a newly-formed energy investment company, has received an equity commitment from American Securities (AS) in support of a strategy to invest in and acquire up to $2 billion of midstream energy sector companies and assets. The founding partners of DMP are Thomas F. Karam, President & CEO, and Michael J. Walsh, Senior Vice President. Mr. Karam has over 20 years of energy sector experience, most recently serving as President & COO of Southern Union Company (SUG), one of the largest natural gas pipeline companies in North America. Mr. Walsh was a Partner and founding member of Highstar Capital before establishing DMP, where he was responsible for Highstar’s investments in the midstream energy sector.
Matthew F. LeBaron, Managing Director of AS, commented, “American Securities is excited to work with this team of experienced operating and investment professionals in the midstream energy sector. The Delphi platform expands our reach in the energy and power industry. We believe that the midstream sector presents attractive opportunities, and look forward to working with Tom and Mike to build a business with a long-term focus to capitalize on those opportunities.”
Mr. Karam added, “We are delighted to have American Securities as our partner in DMP. Our combination of midstream sector expertise, professional network and financial resources will allow DMP to quickly identify, evaluate and act on opportunities to invest in North American midstream energy businesses and assets. With our operating expertise and American Securities’ financial support, we believe DMP is uniquely positioned to build a portfolio of world-class midstream energy companies.”
DMP is interested in midstream energy businesses and assets in North America requiring a minimum equity investment of $50 million. DMP typically seeks control positions, but will also consider joint ventures or influential minority interests. The DMP business model is to create long-term value in its investment companies through operational and commercial excellence, organic and strategic growth opportunities and management-investor alignment of interests.
About Delphi Midstream Partners, LLC
Delphi Midstream Partners, LLC (DMP) is a New York-based energy investment company formed to acquire controlling or influential minority interests in midstream energy companies and assets. DMP is focused on businesses with sustainable market positions, managed commodity exposure and opportunities for organic and strategic growth. More information on DMP can be found at www.delphimidstream.com.
About American Securities
Headquartered in New York with an office in Shanghai, American Securities is a U.S. middle-market private equity firm that invests in market-leading companies in North America with annual revenues generally ranging between $100 million to $1 billion. Investments are funded from more than $6 billion of committed capital. The firm traces its roots to the family office founded in 1947 by William Rosenwald to invest and manage his share of his family’s Sears, Roebuck & Co. fortune. More information on American Securities can be found at www.american-securities.com.