Trilantic Capital Partners has completed its largest exit of the year, selling a majority stake in oil and gas producer TLP Energy to NFR Energy for $655 million.
TLP specialises in oil and gas exploration, production, gathering and processing in Texas and Oklahoma. Trilantic helped form the business in August 2011, investing from its $2.6 billion Fund IV, a 2007 vintage.
“Trilantic’s capital was deployed over the past 16 months to quickly grow TLP’s acreage and production base through leasing activity, new drilling and selective bolt-on acquisitions,” Trilantic partner Christopher Manning told Private Equity International.
The deal marks Trilantic’s fifth exit of the year, following the exit of custom food ingredient company Fortitech, restaurant business Istanbul Doors Group, hospital group Mediclinic International and mobile asset management Microstar Logistics.
As part of the transaction, First Reserve, which acquired a minority stake in TLP in December 2011, has also exited its investment in the company.
Trilantic’s fifth exit comes as the firm seeks $2 billion for its fifth flagship fund. Fund V had raised at least $923 million as of 10 August, according to documents filed with the US Securities and Exchange Commission.
The fund has a $3 billion hard-cap and will invest primarily in high growth mid-market companies in the consumer, financial services, business services and energy sectors, according to Pennsylvania Public School Employees’ Retirement System documents. The fund will invest between $50 million and $200 million in equity per deal and will provide co-investment opportunities to limited partners.
PSERS’ Board of Trustees approved a commitment of up to $100 million to the fund in April.
Fund V is the firm’s first independent vehicle since spinning out of Lehman Brothers Merchant Banking in 2009. Unlike Fund IV, which has a global investment strategy, Fund V will only invest in North American opportunities, according to PSERS documents.
Evercore Group and Barclays Bank are listed as associated broker/dealers on the fund’s SEC documents.
Trilantic is chaired by partners Charlie Ayres. The firm manages four private equity funds with $5 billion of total capital commitments and maintains offices in New York, London, Guernsey and Luxembourg.