EnCap Flatrock invests $250m in Stakeholder Midstream

EnCap taps into energy services investment opportunity.

EnCap Flatrock Midstream, a Texas-based private equity firm, has invested $250 million in Stakeholder Midstream to fund the launch of the company that provides services to oil and gas production companies, according to a statement.

The investment was made from EFM Fund III, a $3 billion, 2014 vintage vehicle. The transaction terms were not released.

Investors in the firm's third fund include the California State Teachers' Retirement System, Florida State Board of Administration, Houston Municipal Employees' Pension System, New Mexico Statement Investment Council and the San Antonio Fire and Police Pension Fund.

Stakeholder, a provider of diverse services to oil and gas producers, is led by Robert Liddell and Gaylon Gray who serve as chief executive and chief operating officer, respectively.

“Our initial equity commitment to Stakeholder reflects our confidence in Rob and Gaylon and their proven ability to effectively deploy capital, develop complex assets and grow a dynamic midstream company,” said EnCap Flatrock Midstream managing partner Bill Waldrip said in an announcement.

Liddell and Grey worked together at Texas' TexStar Midstream Services LP where they oversaw the development greenfield projects to support the company's growth in the Eagle Ford Shale.

In May, EnCap appointed former Valero Energy Corporation veteran energy executive Gregory King as a senior adviser in connection with strengthening its origination capabilities in the liquids area of the energy industry.