Tailwater Capital Spins Out Of HM Capital With $425 Million Fund

New private equity firm launches with focus on oil and gas investments

News provided by

May 20, 2013, 07:30 ET

DALLAS, May 20, 2013 /PRNewswire/ -- Tailwater Capital ("Tailwater"), a newly formed Dallas-based private equity firm, announced today it has partnered with Landmark Partners to complete the secondary purchase of HM Capital's legacy energy portfolio. Jason Downie and Edward Herring will lead a team dedicated to investing in the energy industry with a primary focus on investments within the midstream and upstream sectors.

Tailwater will manage a portfolio that includes BlackBrush Oil & Gas, TexStar Midstream Services and SunTerra Well Services. During their tenure with HM Capital, Downie and Herring were responsible for the sourcing of these investments as well as the oversight of each company's performance through representation on each company's board.

"We're excited to launch our fund with Landmark Partners," said Edward Herring, Managing Partner of Tailwater Capital. "Landmark has a rich history of successful investments in secondary strategies, and we are confident that together we will continue building on that success."

"Edward and Jason bring extensive industry experience and proven investment capabilities to this venture," commented Ian Charles, Partner of Landmark Partners. "With an excellent team and infrastructure, Tailwater is well-positioned to pursue opportunities in the energy sector."

"We are looking forward to continuing our partnership with the management teams of these three outstanding energy companies," said Jason Downie, Managing Partner of Tailwater. "The Tailwater team is committed to building strong relationships and industry leading companies and, in turn, delivering exceptional returns to our investors."

Tailwater and HM Capital were represented by a team from Weil, Gotshal & Manges LLP led by partner Rodney Moore and Landmark Partners was represented by a team from Kirkland & Ellis LLP led by partner Michael Belsley.

About Tailwater Capital
Tailwater Capital ("Tailwater") is a Dallas-based private equity firm providing growth equity capital across all domestic energy sectors. The Managing Partners have focused on the energy sector for the past 14 years, investing over $1 billion in equity capital. www.tailwatercapital.com

About Landmark Partners
Landmark Partners ("Landmark") is a private equity and real estate investment company specializing in secondary funds. Formed in 1989, the firm has one of the longest track records in the industry and is a leading source of liquidity to owners of interests in venture, mezzanine, buyout, and real estate limited partnerships. www.landmarkpartners.com

Media Contact:
Courtney Goldberg
214.808.3603
[email protected]

SOURCE Tailwater Capital