Tailwater Capital, an energy-focused private equity firm, has closed its third fund, Tailwater Energy Fund II LP at $650 million. 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’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 Capital was founded in 2013 and is led by founding partners Edward Herring and Jason Downie, who have worked together for 16 years and executed 35 transactions representing $11 billion of transaction value. 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 firm is headquartered in Dallas (www.tailwatercapital.com).
“We will continue partnering with talented management teams to pursue platform investments in this dynamic sector,” said Mr. Downie. “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 (www.csplp.com) served as the placement agent for Fund II and Weil, Gotshal & Manges provided legal counsel.
2014 PEPD • Private Equity’s Leading News Magazine • 12-15-14