Bayou City Energy, Intervale Capital and Cibolo Energy Partners have formed Argus Energy Managers. Based in Houston, AEM is an affiliate network of private equity firms focused on upstream, energy services and equipment and fixed income investments. According to AEM, it currently manages more than $1.7 billion of committed capital.
HOUSTON, March 21, 2017 /PRNewswire/ — Argus Energy Managers (“AEM”) today announced its formation, creating an affiliate network of three Houston-based energy private equity firms, Bayou City Energy (“Bayou City”), Intervale Capital (“Intervale”), and Cibolo Energy Partners (“Cibolo”).
This distinctive network of private equity firms serves the substantial and growing lower-to-middle deal market, and currently manages, in aggregate, more than $1.7 billion of committed capital.
The AEM founders believe the lower-to-middle market has been underserved, driven by the trend of private equity managers to steadily increase fund sizes and equity commitments. Through the formation of this affiliate group of energy private equity managers, AEM strives to facilitate collaboration and mindshare among its managers across the energy value chain, which includes aiding in their pursuit of investments.
Charles Cherington, co-founder of Argus Energy Managers, said: “Bringing together small, focused energy managers to collaborate is an innovative approach in the energy sector. My co-founder, Will McMullen, and I believe that by sharing insights, relationships and expertise, our affiliates increase their chances of finding and cultivating successful small-to-mid sized investments.”
Bayou City, Intervale and Cibolo will remain specialized, selecting and managing their own investments and funds in their own verticals – upstream exploration and production (E&P), energy services and equipment, and energy debt, respectively. All three affiliates have accomplished leadership teams with deep private equity experience and industry relationships.
Cherington added: “When AEM sponsors an investment manager, we expect them to be successful on their own merit while encouraging them to leverage AEM’s expertise and network. In our minds, collaboration creates synergies that will ultimately benefit them and their respective investors.”
AEM holds equity interests in each affiliate and therefore is aligned with the respective principals of each affiliate.
About Intervale Capital
Intervale was founded in 2006 and is dedicated to investing in middle-market energy services and equipment companies. Intervale is actively investing in platform companies and add-ons for existing portfolio companies. For more information, please visit www.intervalecapital.com.
About Bayou City Energy
Bayou City is an upstream-focused energy private equity firm based in Houston, Texas. Bayou City focuses on lower middle-market investments in the North American upstream through two complementary strategies: providing buyout and growth equity capital for small operators with producing assets, and partnering with leading operators to provide dedicated drilling capital in off-balance sheet structures. For more information, please visit www.bayoucityenergy.com.
About Cibolo Energy Partners
Cibolo is an energy credit firm primarily focused on senior-secured investments in oil and gas companies. Cibolo targets companies with producing assets in deal sizes ranging from $20-$75 million. For more information, please visit www.ciboloenergy.com.
About Argus Energy Managers
AEM is a Houston-based privately held company with equity interests in distinguished boutique investment managers focused on the energy space. This affiliate network of private equity firms currently manages, in aggregate, more than $1.7 billion of committed capital, focused on upstream, energy services and equipment, and fixed income investments. For more information, please visit www.argusem.com.