Lehman Brothers Merchant Banking spin-out Trilantic Capital Partners is closing in on its first-ever deal with a $130 million growth capital investment in existing portfolio company Enduring Resources.
Enduring acquires and exploits properties with natural gas resources, and Trilantic’s additional capital infusion will allow the company to develop numerous properties that it owns. Trilantic’s investment is slated to close by the end of the month, according to Chris Manning, a partner with Trilantic.
Trilantic’s former parent, Lehman Brothers, invested in Enduring Resources in 2004 along with EnCap Investments, Credit Suisse and Avista Capital Partners. Lehman invested in Enduring out of its Merchant Banking Fund III.
“We like the fundamentals of natural gas in the US, the prices are challenging right now, but that won’t last forever,” Manning said.
Trilantic spun out of Lehman Brothers Merchant Banking in April, after more than 300 limited partners in the Merchant Banking funds voted to approve the deal.
Trilantic manages about $3.3 billion in assets, including about 20 holdings in Lehman’s Merchant Banking Funds III and IV. The firm has $1.7 billion of dry powder.
Charlie Ayres, head of Trilantic, said the firm is exploring several interesting investment opportunities, and is “looking forward to investing in a more attractive and sober environment” than the buyout boom of the past few years.