Tailwater raises more than $1bn in new energy fund

Dallas-based private equity firm Tailwater Capital announced the closing of its Tailwater Energy Fund IV with $1.1 billion in capital commitments, including a co-investment for one of the fund’s platform companies. Tailwater said it is poised to “opportunistically execute” on the buying opportunities created by the capital access issues in the energy industry as the firm now has more than $1.3 billion in dry powder. Officials said that the latest fund will continue Tailwater’s strategy of partnering with proven management teams to identify attractive opportunities in midstream infrastructure with opportunities across the value chain from wellhead to refinery gates. Led by Jason Downie and Edward Herring, the firm has raised more than $3.7 billion since its 2013 inception and handled more than 100 transactions representing more than $20 billion of transaction value. “We are pleased to have closed Fund IV and greatly appreciate the strong support from both new and existing limited partners,” said Edward Herring, Co-Founder and Managing Partner of Tailwater. “Raising our largest fund to date in today’s energy environment is a testament to the strength of the Tailwater team and the longstanding trust our investors have placed in us to continue identifying attractive opportunities in the midstream sector.” “As we focus on putting this capital to work in a strategic and patient way, amid this market volatility, we believe we will see some of the most compelling buying opportunities we have come across in many years,” said Jason Downie, co-founder and managing partner of Tailwater. “Having invested through multiple cycles, we are confident private equity will play a critical role in solving the prevailing capital constraints of the energy industry.” So far, Fund IV has committed to several new platform companies and is looking forward to continuing to support their growth. The firm’s previous fund, Tailwater Energy Fund III closed in July 2018 with $1 billion in total commitments. That fund has committed capital to six platform companies.

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