Blue Wolf Capital Partners’ third fund has partnered with K2 Energy Capital and its founder Kevin Kuykendall for energy services investing, the firm said.
Kuykendall is the founder and managing partner of K2, which focuses on private equity and mezzanine debt investments in oilfield services, utility services, midstream, upstream and alternative energy.
Prior to founding K2 in 2013, Kuykendall was a managing director at American Capital for almost 10 years, according to his LinkedIn profile. He had also been a director at Enron, where he co-founded the Enron North America Principal Investments Group, Blue Wolf said.
“As we look to invest in this dynamic sector where both struggling and healthy companies are in need of capital and operational expertise, we are very pleased to welcome him to Blue Wolf,” Blue Wolf managing partner Adam Blumenthal said in a statement.
Kuykendall added: “Ongoing weak commodity prices have caused severe distress across significant swaths of the energy sector. For seasoned investors with committed capital and access to both restructuring and operating expertise, a broad range of opportunities exists to invest in energy-related companies at attractive valuations and expand those companies significantly as the energy sector begins to recover.”
Blue Wolf specialises in making control investments in mid-market companies. It usually seeks to invest in companies in which government plays an important role and where labour unions represent a significant component in the value chain, and companies facing financial, operational or governance distress, according to PEI Research & Analytics.
It seeks to invest over $10 million in a mix of debt and equity in companies with at least $25 million in revenue. Blue Wolf, which manages $445 million, closed Blue Wolf Capital III, its latest fund, on its $300 million hard-cap in July 2013, according to PEI data.
K2, based in Texas, is a private investment firm seeking control transactions in the energy services sector.
A spokeswoman was not available to comment.