Seven executives have left NGP Energy Capital Management just a month after the private equity firm closed its eleventh fund, according to a note to investors seen by peHUB, and a person with knowledge of the firm.
Irving, Texas-based NGP notified investors yesterday of “several recent developments” at the energy focused private equity firm. NGP mentioned the promotion of Chris Charter to managing partner, the relocation of Bob Edwards to Houston as well as “several recent departures,” the email said.
Four of the executives who left have launched a new firm: Edge Natural Resources of Dallas. The founding team is comprised of former NGP Managing Director Roy Aneed, former NGP General Counsel Jesse Bomer, former NGP Senior Associate Oscar Pate, and former NGP Chief Accounting Officer Stacie Moore. They unveiled Edge Natural Resources on Wednesday, saying it will make small-cap investments in the North American energy industry.
The three other executives who departed are Managing Director Tomas Ackerman and Principals Daniel Goodman and Joe Looke. Ackerman and Goodman are pursuing other business opportunities, while Looke left to manage his family’s oil and gas business, NGP said.
NGP has a staff of about 60 people. None of the departing executives are considered key executives on NGP XI, the firm said in the email, “so there is no impact under the partnership agreement provisions… Given the deep bench of talented people throughout the firm we do not expect any transactional or operational issues arising from these departures.”
Six of the seven executives left in the past week, the source said, although the timing of the departures is unclear. It’s also unknown why so many executives have chosen to depart.
Kenneth Hersh, NGP’s chief executive officer and managing partner, confirmed the firm sent out an email last night informing LPs of Carter’s promotion, Howard’s relocation and the recent departures. However, Hersh would not confirm the names of those who left. People in the investment management industry tend to “move on” after January, Hersh said.
“There is no back story,” Hersh said. “Turnover happens… Professional development is important to the firm and we wish people well.”
The departures come just weeks after NGP closed its eleventh fund. In January, NGP Natural Resources XI L.P. collected $5.325 billion, the fund’s hard cap. NGP closed its 10th fund on $3.58 billion in 2012. Fund X is producing a 17.57 percent average IRR and 1.25x multiple, information from alternative asset data provider Bison said.
NGP XI will focus on oil and gas production, oilfield services, and energy midstream sectors through its Natural Gas Partners investment platform.
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