Ares Management‘s private equity group is to acquire BlackBrush from EIG Management Company and Tailwater Capital. BlackBrush has a history of acquiring and developing oil and gas assets across South Texas.
Ares Management, L.P. (NYSE:ARES) announced today that its Private Equity Group has signed definitive agreements to acquire BBOG II Guarantor, L.P. (BlackBrush) from EIG Management Company, LLC and Tailwater Capital, LLC, on behalf of their respective managed funds. BlackBrush has a successful history of acquiring and developing oil and gas assets across South Texas, which is one of the most productive oil and gas basins in the U.S. With new capital provided in conjunction with the transaction, BlackBrush plans to further develop its more than 160,000 net (360,000 gross) acre position. The transaction is expected to close in the third quarter of 2014 and is subject to customary closing conditions.
“Partnering with the Ares private equity team provides us the capital to continue developing and growing our large asset base”
“We are excited to partner with the BlackBrush management team that has more than 30 years of operating experience and a proven track record in South Texas,” said Nate Walton, Principal in the Private Equity Group of Ares Management. “BlackBrush is a unique opportunity consistent with our strategy of investing in best-in-class management and high quality basins as part of the growth in domestic energy production.”
BlackBrush will continue to be led by its Co-Founder and Chief Executive Officer, Scott Martin. Co-Founder Phil Mezey will also remain involved as an advisor to BlackBrush.
“Partnering with the Ares private equity team provides us the capital to continue developing and growing our large asset base,” said Scott Martin, CEO of BlackBrush.
About BlackBrush Oil & Gas
BlackBrush, founded in 2004, is an independent oil and gas exploration and development company headquartered in San Antonio, Texas with over 75 employees. BlackBrush currently operates over 160,000 net (360,000 gross) acres extensively throughout South Texas and is active in the Eagle Ford and other shale formations. For further information on BlackBrush and its activities visit www.BlackBrushEnergy.com.
Ares Management, L.P. (NYSE:ARES) is a leading global asset manager with approximately $77 billion of assets under management and approximately 700 employees in more than 15 offices in the United States, Europe and Asia as of March 31, 2014. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its four distinct but complementary investment groups in Tradable Credit, Direct Lending, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole.
The Ares Private Equity Group manages $10 billion of assets and is currently actively investing its fourth private equity fund, ACOF IV, which has $4.7 billion of committed capital. The Ares Private Equity Group pursues majority or shared-control investments, principally in middle market companies with strong business franchises and in situations where its capital can serve as a catalyst for growth. Ares Management’s Private Equity senior partners average more than 20 years of experience investing in, controlling, advising, and restructuring companies. Visit www.aresmgmt.com for more information.
EIG is a leading institutional investor to the global energy sector with $15.4 billion under management as of March 31, 2014. EIG specializes in private investments in energy, resources and related infrastructure. During its 32-year history, EIG has invested over $16 billion in the sector through more than 290 projects or companies in 34 countries on 6 continents. EIG’s clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, DC, with offices in Houston, London, Sydney, Hong Kong, Seoul and Rio de Janeiro. Energy Fund XVI is the most recent flagship investment fund of EIG with $6.0 billion raised as of its final closing in November 2013.
Tailwater Capital is a Dallas-based private equity firm focused on middle-market energy investments. Tailwater’s principals have a wealth of experience providing growth equity capital across all domestic energy sectors, having invested over $1.1 billion in equity capital in the space over the past 14 years.