Daily News: March 6, 2018

Energy Industry Vets Launch Madava Finance, Close 1st Transaction

Madava Financial launched its energy-focused finance company by closing its first transaction. Madava is led by Chairman Robb Turner and President Mark Green, both successful energy finance professionals.

Madava was formed to provide flexible capital solutions to the energy industry seeking to fill the gap left by banks exiting the non-conforming lending market. The company specializes in direct senior secured lending to upstream and midstream companies and can also provide mezzanine capital.

Madava arranged a $100 million unitranche debt facility to support XRO Energy’s acquisition of assets from Linn Energy, including nearly 1,300 wells across 169,000 acres of Wyoming’s Washakie/Wamsutter field.

Concurrently with the formation of the company, Madava entered into an asset backed lending facility with Goldman Sachs.

“We are thrilled about the launch of Madava Financial and this transaction,” Turner said. “This organization is comprised of a dynamic group of professionals dedicated to providing capital solutions to our valued partners.”

Madava will continue to evaluate opportunities to provide financial support throughout the U.S. and Canadian energy marketplace. Green added “Significant ongoing capital will be required to support the middle market E&P/Midstream industry and fund the next stages of M&A and development activities.”

Turner is the former senior partner and co-founder of ArcLight Capital Partners, a power and energy private equity firm. During Turner’s career at ArcLight, the firm closed six funds with more than $17 billion invested in the energy sector.

Prior to Madava, Green was the president of Wells Fargo Energy Capital, a non-bank subsidiary of one of the country’s largest capital providers. During his tenure, Green and his team deployed more than $5 billion of debt and equity capital, primarily in the E&P/Midstream space.

Headquartered in Houston, Madava Financial is a private, energy-focused finance company that provides capital alternatives primarily through direct lending to oil and gas producers, midstream operators and power companies in the continental U.S. and Canada.