Executives from Brazos and Parallel have launched Riata Capital Group, the latest entrant in Texas private equity. Riata will focus on sponsoring investments in privately held companies in the consumer, energy, healthcare and business & industrial services sectors.
Riata is founded by Jeff Fronterhouse, co-founder and co-chief executive officer of Brazos Private Equity Partners, and Barron Fletcher, founder and managing partner of Parallel Investment Partners. Both firms announced last year that they wouldn’t raise another fund. The investment period for the Brazos’ third fund which closed on $715 million in 2008, ended in July of last year. Since then, executives at both firms have been striking out on their own.
In September, PEI reported on the launch of Center Oak Partners which is comprised of a handful of former Brazos executives – Randall Fojtasek, former co-Founder and co-chief executive officer of Brazos Private Equity Partners; Michael Salim; Lucas Cutler; Jason Sutherland and William Henry.
Both Fronterhouse and Fletcher knew each other previously. “We are bringing together the best parts of both firms,” Fronterhouse told Private Equity International.
The firm is currently looking to build a track record with 3-4 platform deals over the next two years. “We are entertaining both control and non-control investments,” Fronterhouse said.
Both men declined to comment on fundraising plans.
Both men will also maintain their involvement in the remaining investments at Brazos and Parallel. “We expect to be involved for at least the next few years realizing those investments,” Fletcher said.