Skin in the game
Sent to you by Tan Yinglan via Google Reader:
ReduxAs reported in LBO Wire this morning, oil and gas-focused private equity firm White Deer Management LLC has defied the tough odds facing debut managers in the current economic climate.
It has held a $301.5 million first closing of its debut fund, taking the fund nearly halfway to a $750 million target, according to a Securities and Exchange Commission filing.
Debut fund managers face a tough road in a fund-raising environment in which even established firms are having trouble securing capital from cash-strapped investors. But White Deer has several things going for it.
For one, co-founders Ben Guill and Tom Edelman have long track records in their chosen industry. Guill hails from First Reserve Corp., a well-respected energy-focused private equity firm, while Edelman held senior executive positions at large energy companies including Biofuel Energy Corp. and Patina Oil & Gas Corp., both of Denver.
Perhaps more importantly in the current environment, the firm's own managers proved willing to put their money where their mouths are. White Deer's general partners chipped in some $100 million of their own money to the fund, representing a hefty 13% of its target, according to prospective investors.
The firm plans to invest the new fund in mid-size oil and gas exploration and production companies, as well as in energy infrastructure and companies that service the oil and gas industry. Its investment strategy is akin to funds that First Reserve raised back in 2000 and 2001, when that firm had a heavier emphasis on oil and gas and before it pushed deeper into renewables and other subsectors of the energy industry.
For more, read the LBO Wire story.
Things you can do from here:
- Subscribe to WSJ.com: Private Equity Beat using Google Reader
- Get started using Google Reader to easily keep up with all your favorite sites
