A continuing low oil price has led to a re-focus of the investment strategy and a recent rebranding for independent private equity firm Energy Ventures.
The company, which is headquartered in Stavanger and has offices in Houston and Aberdeen, has changed its name to EV Private Equity.
EV is interested in the companies in the oil and gas services sector which require $10-25million of investment, where the focus is on provision of capital and competence to enable growth, debt deleveraging, succession planning, buy-outs and buy and build cases where there is a compelling opportunity to grow attractive niche business.
The firm recently announced investments in UK based Aquaterra Energy, which has operations in Aberdeen and Cairo and provides engineered solutions, in particular for riser systems, offshore structures and rental equipment to the global oil and gas industry.
Aquaterra seeks to grow organically and by partnering with complementary business through joint ventures and by acquisition.
EV also recently completed an investment in Calgary-headquartered ‘measurement while drilling’ (MWD) specialist Evolution Engineering, where the equity will be used to accelerate the company’s North American growth and expand its product development.
Greg Herrera, one of the firm’s senior partners, said: “EV has a proven track record of investing in high growth companies, not just in the North Sea, but across the globe. The strategic capital we have provided to Evolution Engineering and Aquaterra Energy is a great example of this.
“We believe the oil and gas industry could continue to benefit from both our capability and our capital during this low oil price environment.
“For example, we strongly believe that the oil and gas industry is at the onset of a recovery and that operator customers will soon start to generate meaningful cashflow leading to a shift in their OPEX and CAPEX budgets. This backdrop can provide a meaningful opportunity for small to medium sized businesses to recapitalize for such a snapback in spending.”
Over the past 15 months EV has remained active in the UK oil and gas industry, completing nine deals during that period. Mr Herrera believes this area remains central to the global market and insists EV will continue to find attractive investment opportunities in the region resulting in new jobs and new opportunities.
EV Private Equity is an independent private equity firm actively seeking investment in companies that deliver marketable, proprietary products or services with potential in the upstream sector. From initial investment to exit, the firm partners with the co-owners and management of the portfolio companies to ensure the effective use of capital and expertise.