Intervale Capital has held a final closing of its second fund with capital commitments of $376 million, exceeding its target of $325 million and investor demand for the fund exceeded the $350 million cap on limited partner commitments.
Fund II will employ the same approach as the firm’s first fund: executing privately negotiated, control investments in lower middle-market companies in the oilfield services and equipment industry that are located predominantly in North America and Europe.
Intervale closed its first investment in Fund II in December 2011 with the purchase of Allied Oil & Gas Services. The company provides well cementing and acidizing services to customers in the Permian Basin, Mid-Continent and Appalachian Basin regions. Allied is headquartered in Fort Worth, TX with locations in West Texas, Kansas, Pennsylvania and West Virginia (www.alliedservices.com).
Fund II’s limited partners include university endowments, pensions, funds of funds, foundations, insurance companies and sovereign wealth funds. In addition to limited partner commitments of $350 million, the Intervale team and affiliates committed $26 million to Fund II.
Fund II is led by partners Charles Cherington and Erich Horsley, who have executed more than 15 oil field services (OFS) transactions together since 2006. “We are delighted to reach our hard cap in a difficult fundraising environment and we are eager to selectively deploy the new capital in attractive segments of the OFS space,” said Mr. Cherington.
Credit Suisse Securities served as Intervale’s placement agent and Choate Hall & Stewart provided legal counsel.
Intervale raised $281 million for its first fund in 2008 and recently completed its first two exits: Casedhole Solutions was sold to C&J Energy Services in June 2012 for $278 million; and Ulterra Drilling Technologies was sold to ESCO Corporation in August 2012 for $325 million.
Intervale Capital is focused exclusively on investments in middle-market oilfield services companies and related technologies with $5 million to $30 million in trailing EBITDA. The firm has offices in Houston, TX and Cambridge, MA (www.intervalecapital.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 9-10-12