Carlyle, Riverstone portfolio company files $400m IPO

The firms, which going forward will no longer raise joint energy funds, invested $450m in Dynamic Offshore Resources in 2008.

Dynamic Offshore Resources, a portfolio company of The Carlyle Group and Riverstone Holdings, plans to raise $400 million through an initial public offering filed with the US Securities and Exchange Commission.

Dynamic, based out of Houston, Texas, is an oil and gas exploration company focused on operating and acquiring properties in the Gulf of Mexico. Carlyle and Riverstone acquired a stake in the company through a $450 million investment in 2008. Dynamic’s management team invested an additional $50 million.

The company would likely come to market in the next three to four months, according to Morningstar analyst Jim Krapfel.

“It will probably generate interest, but it won’t be a hot IPO. It’s not a real growth story,” he said.

Citigroup, Credit Suisse, Deutsche Bank Securities, Tudor Pickering, Holt and Co. and UBS Investment Bank will underwrite the offering. The company has not been priced.

Spokesmen for Carlyle and Riverstone did not return requests for comment.

To date, Dynamic has interests in over 400 producing wells and 200 offshore leases covering approximately 350,000 net acres, according to its website.

Riverstone and Carlyle have raised four funds together since 2000, according to Private Equity International's data provider Private Equity Connect. The Riverstone/Carlyle Global Energy and Power IV fund raised $6 billion in 2009. Its 2006 predecessor raised $3.8 billion.

In 2009, the firms were hit with a combined $50 million in fines after settling with then-New York attorney general Andrew Cuomo over the state’s wide ranging pay-to-play scandal. 

The firms will not be raising another fund together, a source familiar with the matter said. Riverstone has reportedly launched its first independent fund since concluding its relationship with Carlyle, targeting $6 billion for companies in the energy and power sectors.