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Lehman spin-out Trilantic continues exit spree with TLP Energy sale

18 Dec 2012

Trilantic, the buyout firm set up three years ago by five former dealmakers from Lehman Brothers’ merchant banking arm, has sold Oklahoma City-based oil and gas producer TLP Energy  just a year after financing the company’s formation.

The firm sold the company’s upstream and midstream assets – including around 64,000 net acres of mineral leasehold and production of 6,500 barrels of oil equivalent per day – to NFR Energy for about $655m.

TLP Energy was formed in August last year by its CEO David Le Norman with funding from Trilantic and energy-focused private equity firm First Reserve.

The two firms reportedly put $350m in the business, marking Trilantic’s fifth investment in the oil and gas exploration and production space.

Trilantic invested $225m in TLP, while First Reserve committed the remaining $125m.

TLP, whose assets consist primarily of oil and gas production and leases in the Texas Panhandle and Oklahoma, targets several hydrocarbon reservoirs including the Cleveland Sands and the Granite Wash plays.

The company is the latest in a series of recent and pending exits for Trilantic including Fortitech, Istanbul Doors Group, Mediclinic International and SRAM.

The firm is also understood to be nearing a deal to sell MicroStar Solutions, a company that manages keg shipments for breweries, to mid-market private equity firm Freeman Spogli & Co for as much as three times its initial investment.

The TLP Energy deal was made through Trilantic Capital Partners IV (North America), which is now almost fully invested, while the management team is understood to have reached a $923m first close in August for the fund’s $2bn successor.

Trilantic Capital Partners V (North America) has a hard cap of $3bn, according to disclosures from Pennsylvania Public School Employees’ Retirement System.

Last month two sources told AltAssets that Trilantic will launch its first independent European fund in January next year, with a target of €700m.

The London team is in the process of hiring a placement agent for the vehicle after its most recent deal to invest in Spanish telecoms business Euskaltel took it over the 80 per cent mark for Fund IV.

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