OFS Energy Fund (OFS) has held a final closing of its third private equity fund (Fund III) which was well oversubscribed at its $175 million hard cap. The new fund closed in less than 90 days from the start of fundraising.
As with the firm’s prior funds, Fund III will maintain the focus of acquiring and recapitalizing middle-market companies in the energy service industry. OFS’ first fund (Fund I) had $47 million in commitments and was raised primarily from energy industry executives and closed in 2008 and has achieved in excess of four times cash-on-cash returns. The firm’s second fund (Fund II) has $90 million in commitments and is 80% deployed with six remaining platform companies and two other companies that sold for approximately four times cash-on-cash returns.
“We are very honored to have the opportunity to continue to work with sophisticated private and public institutional investors as well as our core of energy industry executives who have invested across Fund I to Fund III. We are also pleased to have our portfolio company CEOs from Fund I continue to invest in Fund II and Fund III reflecting their belief in our ability to find good company investments and add value as we work with our management teams to rapidly grow the underlying business,” said Bruce Ross, managing partner of OFS.
In addition to a number of energy industry executives who invested previously in the first two funds, Fund III has new limited partners including an Ivy League university endowment, a private pension plan for a Fortune 100 company, a private charitable endowment, multiple public pension plans and fund of funds investors.
The OFS’ team has significant experience in the energy service market, including direct executive operating responsibilities. The entire operating team from OFS’ prior funds remains together to manage Fund III. This includes Bruce Ross, Jerad McMayon, Scotty Reynolds, Ross Canion and Logan Kelley.
Two new members have joined the OFS team to help manage Fund III. Frank Schageman, former CFO of R360 Environmental Solutions, has joined OFS as an Operating Partner where he oversees portfolio company initiatives and assists the deal team in evaluating transaction opportunities. Robert Whilden, former Executive Vice President of Continental Energy Services, has joined OFS as a Principal where he assists in identifying, evaluating and executing new investments as well as supports various portfolio company initiatives.
OFS specializes in acquiring and recapitalizing lower middle-market energy service companies with enterprise values between $5 million and $150 million. Combining Fund II and Fund III, OFS now has $265 million of capital under management. OFS is based in Houston (www.ofsfund.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-8-14
