EnCap Flatrock Midstream closes US$3 billion fund

EFM has established a unique expertise, a broad network and a strong track record of investing value-added growth capital in the midstream segment of the North American energy industry. EFM III will follow the same strategy as its successful predecessors EnCap Flatrock Midstream Fund I, LP and EnCap Flatrock Midstream Fund II, LP by investing in independent, startup midstream companies led by experienced management teams. EFM II is a 2012 vintage fund that closed at its hard cap of US$ 1.75 billion and has made equity commitments to 10 portfolio companies. Since the firm’s first fund closed in 2010, EnCap Flatrock has made equity commitments to a total of 16 portfolio companies and has had four realisation events totalling nearly US$ 4 billion.

Bill Waldrip, EnCap Flatrock’s founder and one of its three managing partners, said, "We are extremely pleased with the continued support we have received from our limited partners and excited to welcome many new investors to EFM. With EFM III, we plan to continue to apply our proven investment process as we seek to generate attractive returns for our investors. We have a results-driven value creation philosophy that is guided by a disciplined approach to risk management that has served our teams and investors very well."

"As we deploy Fund III, we will continue to partner with the best midstream management teams in North America to help them grow their companies into valuable market leaders. We’re enthusiastic about our industry’s future and pleased to have a new pool of capital to put to work. We are actively looking for new management teams that are seeking value-added capital and are aligned with our approach. It’s a simple approach. We come to work every day thinking about what we can do to help the teams we work with reach their goals.”

EnCap Flatrock Midstream was founded in 2008 by the former Flatrock Energy Advisors and EnCap Investments LP EFM III is EnCap Investments LP's 18th institutional fund and brings the aggregate total raised by EnCap Investments over its 25 year history to more than US$ 21 billion.

Thompson & Knight LLP served as legal counsel to EnCap Flatrock. Partner Michael K. Pierce and Sarah N. Furbee led the legal team from Thompson & Knight’s Houston office.

Adapted from press release by Hannah Priestley-Eaton