The latest collaboration between The Carlyle Group and energy-focussed Riverstone Holdings is a $450 million (€304 million) investment in a new oil and gas company, Dynamic Offshore Resources. The company’s founders and management, one of whom founded and leads a company already backed by Riverstone and Carlyle, will also commit up to $50 million.
The Houston-based company plans to acquire and develop oil-producing properties in the Gulf of Mexico, a region plush with opportunities according to co-founder Matt McCarroll, who was previously president of a similar company, Maritech Resources, as well as founder of Augusta Petroleum Partners.
“With the major oil companies, large independents and other public companies exiting the Gulf of Mexico shelf, market conditions are very favorable for a well-funded and experienced management team like the one we are building at Dynamic Offshore Resources,” McCarroll said in a statement.
John Lancaster, a managing director at Riverstone, made similar remarks and praised McCarroll’s leadership and operational capabilities.
“Matt is a proven operator in the Gulf of Mexico region,” Lancaster said.
In addition to McCarroll, Dynamic Offshore Resources was founded by Mike Moreno, the founder, chairman and chief executive of Moreno Group, a collection of companies that became a Carlyle/Riverstone portfolio company in March 2007.
The 8-year old Riverstone has committed more than $6 billion to 41 investments to date, while 21-year old Carlyle has made equity investments totaling $37.6 billion in 734 transactions to date. The two frequently partner on deals and have raised three energy-related funds together.