Denver-based buyout house Platte River Equity has tapped its third fund for the first time since its $405m final close by picking up a controlling stake in fracking sand services business Wildcat Minerals.
The six-year-old oilfield consumables distributor said it had manoeuvred its business to become the leading independent material handling services provider to fracking sand producers, providing everything from procurement to inventory management and materials loading.
Platte River Managing Director Peter Calamari said, “Wildcat is benefiting as the use of proppant (fracking sand) per well continues to increase.
“In addition, as transportation represents a growing portion of the delivered cost of proppant, Wildcat serves a critical niche in efficiently managing the logistics of the material from mine to well.”
Platte more than doubled its assets under management after beating its target for its latest buyout fund in December last year.
Platte River Equity III hit its $405m hard cap thanks to commitments from almost 120 investors, a source with direct knowledge of the fundraise told AltAssets.
The result marks a rapid fundraise for Platte River, which said it was initially targeting $350m when it began fundraising in June 2012.
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