Riverstone Holdings has committed $200 million of capital to Abaco Energy Technologies, a new platform company formed by Riverstone to acquire, integrate and develop energy related manufacturing and service businesses.
In launching Abaco, Riverstone has partnered with Ken Babcock and Roger Rivet, the former CEO and CFO of Titan Specialties and International Logging, two prior portfolio companies of Riverstone. Titan, which was acquired by Riverstone in March 2007, was sold to Hunting in September 2011; and International Logging, which was acquired by Riverstone in March 2006, was sold to Weatherford in August 2008.
“We are very excited to be partnering again with Riverstone. We look forward to building another company that contributes significantly to improving and enhancing oilfield technology and processes that ultimately allow operators to produce hydrocarbons faster and cheaper,” said Mr. Babcock, President and Chief Executive Officer of Abaco.
Abaco will focus primarily on acquiring North American based manufacturing and service business related to drilling, completion and production and associated infrastructure. The company is headquartered in Houston (no website found).
“This investment is another example of Riverstone’s strategy of partnering with proven management teams to pursue service and manufacturing opportunities related to the energy industry,” said John Lancaster, a Partner at Riverstone. “Ken and Roger are long-time energy executives who both played critical roles in identifying and executing growth opportunities in their previous roles as managers of Riverstone portfolio companies, sourcing strategic add‐on acquisitions and integrating new businesses and employees into the organizations that they led. We will aim to build a company that is exposed to attractive secular trends in the oil and gas market through both acquisition and direct investment.”
Riverstone Holdings has approximately $27 billion of capital under management across seven investment funds. Riverstone invests in midstream, exploration & production, oilfield services, power and renewable sectors of the energy industry. Riverstone closed its latest private equity fund, Riverstone Global Energy and Power Fund V, in June 2013, with total commitments of $7.7 billion. Fund V’s original target was $6 billion. The firm was founded in 2000 and has offices in New York, Houston and London (www.riverstonellc.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-1-13
