Tailwater Capital has closed its fourth energy fund at $1.1 billion. Fund IV will target investments in the midstream value chain from the wellhead to the refinery gates. Thompson & Knight LLP served as legal counsel for Fund IV.
DALLAS, March 26, 2020 /PRNewswire/ — Tailwater Capital LLC (“Tailwater”), a private equity firm based in Dallas, today announced that it has closed Tailwater Energy Fund IV LP (“Fund IV”) with $1.1 billion in capital commitments, including a co-investment for one of Fund IV’s platform companies. Receiving strong support from new and existing investors, Fund IV will continue its strategy of partnering with proven management teams to identify attractive opportunities in midstream infrastructure.
Having sourced capital from leading institutional investors, Fund IV will continue to employ a disciplined and nimble approach to investing, targeting opportunities across the midstream value chain from the wellhead to the refinery gates. With more than $1.3 billion of dry powder and management teams operating in all of the core onshore basins in the U.S., Tailwater believes it is poised to opportunistically execute on the buying opportunities created by the capital access issues in the energy industry.
Tailwater is led by founding partners Jason Downie and Edward Herring, who have worked together for over two decades. Since Tailwater’s inception in 2013, the team has raised more than $3.7 billion across its funds and co-investments and executed more than 100 transactions representing over $20 billion of transaction value.
“We are pleased to have closed Fund IV and greatly appreciate the strong support from both new and existing limited partners,” said Edward Herring, Co-Founder and Managing Partner of Tailwater. “Raising our largest fund to date in today’s energy environment is a testament to the strength of the Tailwater team and the longstanding trust our investors have placed in us to continue identifying attractive opportunities in the midstream sector.”
“As we focus on putting this capital to work in a strategic and patient way, amid this market volatility, we believe we will see some of the most compelling buying opportunities we have come across in many years,” said Jason Downie, Co-Founder and Managing Partner of Tailwater. “Having invested through multiple cycles, we are confident private equity will play a critical role in solving the prevailing capital constraints of the energy industry. I am proud of the talented team we have built and believe we are positioned to continue to enhance our track record of executing creative transactions and building leading companies.”
To date, Fund IV has committed to several new platform companies, and Tailwater is looking forward to continuing to support their growth. The firm’s prior fund, Tailwater Energy Fund III LP, closed in July 2018 with total commitments of $1.0 billion, including a co-investment for a platform company in the fund, and has committed capital to six platform companies.
Thompson & Knight LLP served as legal counsel for Fund IV.
About Tailwater Capital, LLC
Dallas-based Tailwater Capital is a growth-oriented energy private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions. Tailwater currently manages more than $3.7 billion in committed capital and the team has executed more than 100 energy transactions in the upstream and midstream sectors representing over $20 billion in transaction value. For more information, please visit www.tailwatercapital.com.