Intervale raises $190m for energy services

The Boston-based energy investor is targeting $350m for investments in oil and gas exploration and production companies.

Intervale Capital has raised about $190 million for its second fund, which has a $350 million target, according to documents filed with the US Securities and Exchange Commission.

The fund will invest in oil and gas exploration and production companies, with a particular focus on mid-market manufacturing and service businesses. Intervale has made a number of investments from the fund, most recently acquiring oilfield cementing business Allied Oil and Gas Services in December 2011.

Intervale bills itself as one of the only private equity firms focused solely on mid-market companies in the oilfield services sector.

Credit Suisse is acting as placement agent for Fund III, according to SEC documents. Intervale’s debut fund closed on $280 million, above its $200 million target, in May of 2008. Limited partners in Fund I include fund of funds managers Centinela Capital Partners and Hatteras Investment Partners, as well as Los Angeles-based foundation the J. Paul Getty Trust

Last month, Intervale sealed its first exit from its debut fund, selling Casedhole Solutions, which provides wireline and other complementary services for energy companies. Under Intervale’s ownership, revenue at the company grew from $32 million in 2008 to $157 million in 2012.

Oil and gas has been a popular strategy with limited partners as of late. On Wednesday, Natural Gas Partners announced the closing of its tenth fund on $3.58 billion. The fund will invest in oil and gas production, oil field services and power companies. Last month, Calgary-based ARC Financial closed its seventh fund on its C$1 billion (€802 million; $977 million) hard-cap. The energy-focused firm targets investments in the Canadian oil and gas sector.

Intervale was founded in 2006 by Charles Cherington, the former founder of mid-market energy investor Cherington Capital, and Curtis Huff, who previously founded Freebird Partners, an energy investment firm.

Intervale prefers investments in which management teams retain maintain a “significant minority ownership position”, according to its website. The Boston-based firm currently has investments in 10 companies with operations in oil and natural gas production.