Tailwater closes third fund at $650 mln

Tailwater Capital has closed its third fund at a hard cap of $650 million. The pool will focus on domestic energy firms. Capstone Partners was the placement agent.


DALLAS, Dec. 15, 2014 /PRNewswire/ — Tailwater Capital LLC (“Tailwater”), an energy-focused private equity firm, announced today the closing of its third fund, Tailwater Energy Fund II LP (“Fund II”) at $650 million. Since launching in 2013, Tailwater has raised more than $1.4 billion across three funds, Tailwater Energy Fund I, Tailwater E&P Opportunity Fund and the recently closed Fund II. The team will leverage its considerable experience to invest Fund II across the midstream value chain and seeks to extend its successful track record.

“We’re grateful to have the opportunity to continue investing on behalf of our supportive investor base, and we look forward to working with our new limited partners,” said Edward Herring, Managing Partner of Tailwater Capital. “We believe our deep sector expertise will enable us to capitalize on the attractive fundamentals of the domestic energy market utilizing our disciplined, solutions-oriented investment approach.”

Tailwater is led by founding partners Herring and Jason Downie, who have worked together for 16 years and executed 35 transactions representing $11 billion of transaction value. Launched in early 2014 with a target of $400 million, Fund II had its final close on December 5, 2014 at its hard cap.

“We will continue partnering with talented management teams to pursue platform investments in this dynamic sector,” said Downie, Managing Partner of Tailwater. “The Tailwater team continues to grow, and we are excited to be making new investments at a time in which midstream infrastructure is in such acute need.”

Capstone Partners, LP served as the placement agent for Fund II and Weil, Gotshal & Manges LLC provided legal counsel.

About Tailwater Capital LLC
Dallas-based Tailwater Capital is a middle market private equity firm providing growth equity capital across the domestic energy sector. The Managing Partners have extensive investment experience in the energy industry, having executed 35 transactions with a total transaction value of $11 billion over the last 16 years. For more information, please visit www.tailwatercapital.com.

About Capstone Partners, LP
Founded in 2001, Capstone Partners, LP is a leading independent placement agent focused on raising capital for private equity, credit, real assets and infrastructure firms. Its experienced team of 28 professionals, working from offices in North America, Europe and Asia, has a proven track record of creating high momentum capital raises for an exclusive group of sponsor clients. For more information, please visit www.csplp.com.