Tailwater Capital, an energy and infrastructure private equity firm, closed approximately $500 million of equity capital commitments to extend and grow its partnership with Producers Midstream II, a provider of midstream solutions in New Mexico, Texas and Oklahoma.
The continuation vehicle, managed by Tailwater Capital, is anchored by Secondaries at Goldman Sachs Alternatives and supported by new and existing Tailwater limited partners. The investment also includes a separate equity commitment from newly formed Tailwater Fund V and related vehicles. The continuation vehicle and Fund V commitments include a significant primary equity component to support the company’s growth across its asset footprint.
In conjunction with the investment closing, Producers Midstream has expanded its senior secured credit facility from $400 million to $600 million. The expanded facility, led by Texas Capital Bank, strengthens the company’s balance sheet and provides increased flexibility to fund development across its entire asset footprint in New Mexico, Texas and Oklahoma.
“Tailwater is proud to continue supporting Producers Midstream as they execute on a proven strategy and pursue new opportunities for growth,” Stephen Lipscomb, partner at Tailwater Capital, said. “This transaction reflects the strength of the platform, the confidence of our investors, and the leadership team’s strong executional capabilities.”
Matt Flory, CEO of Producers Midstream, added, “The closing of this capital raise marks a significant milestone for Producers Midstream, strengthening both our capital position and our ability to serve customers with flexible and creative solutions. It is a testament to the hard work of our team and the continued trust of our partners.”
Campbell Lutyens served as exclusive financial advisor to the transaction. Kirkland & Ellis acted as legal advisor for Tailwater in connection with the continuation vehicle transaction and for Producers Midstream in connection with the senior credit facility.
