Tailwater Capital closes third fund on $650m

The Texas-based firm focuses on energy investments

Texas-based Tailwater Capital has closed its third fund on $650 million. Tailwater Energy Fund II will follow the same strategy as its predecessor fund Tailwater Energy Fund I, which closed on $425 million in May of last year, according to Private Equity International’s research and analytics division.

Fund II launched in the first quarter of 2014 and beat its $400 million target. The fund is the latest in a number of rapid and successful fundraises focused on energy in North America.

Tailwater declined to comment on fundraising.

Tailwater is currently in market with another vehicle – Tailwater E&P Opportunity Fund, which launched this month.

Tailwater invests across the midstream value chain in North America. The firm was formed after spinning out of Texas-based HM Capital which wound down operations in 2013. At that time, Tailwater took over management of BlackBrush Oil & Gas, TexStar Midstream Services and SunTerra Well Services from HM Capital. The firm completed the acquisition of those HM Capital companies in a secondary partnership deal with Landmark Partners.

Tailwind is led by Edward Herring and Jason Downie.

Capstone Partners served as the placement agent for Fund II.