Tailwater Capital

Tailwater Capital Receives Total Commitments of $1.0 Billion for Third Energy Fund

Oversubscribed and Largest Fund to Date Advances Firm’s Strategy of Partnering with Proven Management Teams in the Midstream Sector

DALLAS, July 25, 2018 /PRNewswire/ — Tailwater Capital LLC (“Tailwater”), an energy-focused private equity firm based in Dallas, announced today that it has closed Tailwater Energy Fund III LP (“Energy Fund III”) at its hard-cap of $900 million and raised a $100 million co-investment for a platform company in the fund, bringing total commitments to $1.0 billion. With significant demand from both new and existing investors, the team will continue to leverage its established record of creating solutions-oriented, value-added partnerships with proven management teams to invest Energy Fund III across the midstream value chain.

Tailwater is led by founding partners Jason Downie and Edward Herring, who have worked together for nearly two decades and executed more than 100 transactions in the energy sector representing over $18.8 billion of transaction value. Since launching in 2013, Tailwater has raised more than $2.7 billion across its funds and co-investments. Tailwater will continue to focus on acquiring and growing midstream assets as well as participating in non-operated upstream opportunities in select basins, through the firm’s E&P Opportunity funds.

“We appreciate the support of our new and existing Limited Partners and are extremely pleased to have closed our largest fund to date,” said Jason Downie, Co-Founder and Managing Partner of Tailwater. “With this latest fund being oversubscribed, we have further solidified our position as a preferred source of private equity capital for leading energy entrepreneurs. We look forward to continuing to partner with proven management teams and creating meaningful value for our investors.”

To date, Tailwater has successfully committed a substantial amount of Energy Fund III across six platform companies and has a robust pipeline of new teams and add-on opportunities.

Edward Herring, Co-Founder and Managing Partner of Tailwater, added, “I am extremely proud of the team we’ve built and believe that our deep transaction experience is a great complement to our portfolio companies’ operating expertise. Energy Fund III allows us to continue to enhance our record of creatively navigating complex transactions and building leading companies in the midstream sector. As evidenced by our deployment so far, there are unparalleled opportunities to put capital to work addressing the significant demands for midstream infrastructure.”

Tailwater’s prior midstream fund, Tailwater Energy Fund II LP, closed at $650 million in December 2014.

Capstone Partners served as placement agent and Thompson & Knight LLP served as legal counsel for Energy Fund III.

About Tailwater Capital LLC

Dallas-based Tailwater Capital is a highly specialized, growth-oriented energy private equity firm with a well-established track record, having executed more than 100 energy transactions in the upstream and midstream sectors representing over $18.8 billion in transaction value. Tailwater currently manages over $2.7 billion in committed capital, over $800 million of which is available for new investments. For more information, please visit www.tailwatercapital.com.

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Jonathan Keehner / Ed Trissel / Julie Oakes
Joele Frank, Wilkinson Brimmer Katcher

Tailwater Capital LLC

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