Black Bay Energy Capital, LLC (“Black Bay”) is pleased to announce the closing of its oversubscribed second fund, Black Bay Energy II, L.P. (the “Fund”), with total commitments of $210 million, exceeding its $200 million target. Black Bay invests in companies led by talented entrepreneurs offering proven, next-generation products and services that help improve economics, efficiency and safety for energy producers across the hydrocarbon value chain. Black Bay focuses on investments requiring up to $30 million of equity capital.
“The Black Bay team is extremely grateful for the confidence placed in us by our investors,” said Michael LeBourgeois, Managing Partner at Black Bay. “We believe that our focused approach within the underserved lower-middle market energy sector will generate attractive risk-adjusted returns for our Fund investors and portfolio company partners.”
“Black Bay is solely focused on partnering with talented management teams that are bringing next-generation solutions to the energy industry. Underinvestment in traditional forms of energy has limited the sources of capital for entrepreneurs with compelling businesses,” said Guy Cook, Partner at Black Bay. Tom Ambrose, Partner at Black Bay added, “The energy industry is under pressure to increase shareholder value – but needs to do so in a more environmentally & socially responsible manner – and Black Bay is investing in companies that help the industry deliver on those objectives.”
The Fund has completed two investments to date, including:
- Piñon Midstream – a midstream services provider focused on the gathering, treatment, and redelivery of sour gas. Piñon removes and sequesters hydrogen sulfide (H2S) and carbon dioxide (CO2), unlocking constrained, prolific oil & gas resources in the eastern Delaware Basin. (www.pinonmidstream.com)
- Advanced Industrial Devices – a provider of high-performance electric motor automation and control solutions to the energy and industrial sectors. AID’s offering includes highly engineered and customized variable frequency drive control systems for clients who are electrifying and instrumenting their compression, artificial lift, saltwater disposal, and industrial pump operations. (www.aidusa.com)
Latham & Watkins, LLP, led by partner Edward D. Nelson, served as fund formation counsel. Black Bay did not engage a placement agent for formation of the Fund.