Tailwater Capital raises $1bn

The Texas-based private equity firm closes latest energy fund at hard-cap.

Tailwater Capital has held a final close of Tailwater Energy Fund III at its $900 million hard-cap, after just over a year of fundraising. The firm has also raised a $100 million co-investment for additional investment into a platform company in the fund. Energy Fund III acquires and develops midstream assets and invests in non-operated upstream opportunities.

Montgomery County Employees’ Retirement System is among the investors committed to the fund.

Tailwater Energy Fund II previously closed at $650 million in December 2014.

Capstone Partners acted as the placement agent for Energy Fund III and Thompson & Knight served as legal counsel.