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

Written By: Jen Neville
July 27, 2018

Tailwater Capital LLC, an energy-focused private equity firm based in Dallas, recently announced that it had closed Tailwater Energy Fund III LP 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.

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