Canadian energy-focused private equity firm ARC Financial Corp has made an investment in a new oil and gas business, reports The Wall Street Journal.
The company, Calgary-based Huron Resources, secured a total of $100 million from the investor, and plans to raise an additional $50 million from other sources, the report said.
Huron Resources is being led by Bruce Shultz, who was previously with Calgary’s Huron Energy Corp, acquired by Tourmaline Oil Corp (TSX: TOU) for approximately $258 million in 2012. ARC Financial was among the private equity backers of Huron Energy.
Lauchlan Currie, president and director of ARC Financial, confirmed the Huron Energy investment and told The Wall Street Journal that the company’s management team has “a good track record.”
According to data provided by Thomson Reuters, oil and gas transactions accounted for 12% of total private equity deal volume in Canada in 2013, as well as 14% of disclosed values.
Founded in 1997, the Calgary-based ARC Financial has to date raised seven private equity funds representing $3.7 billion of committed capital, and has made investments in over 160 portfolio companies.
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