Energy-focused private equity firm Riverstone has backed newly-launched company Abaco Energy Technologies with a $200m investment.
The Houston-based company will use the funds to buy and develop energy manufacturing and service businesses focused on drilling, completion and production and associated infrastructure.
Abaco is led by Ken Babcock and Roger Rivet, who previously served as CEO and CFO, respectively, of Titan Specialties. The company was acquired by Riverstone in March 2007 and was sold to Hunting plc in September 2011.
Riverstone partner John Lancaster said, “This investment is another example of Riverstone’s strategy of partnering with proven management teams to pursue service and manufacturing opportunities related to the energy industry.
“Ken and Roger are long-time energy executives who both played critical roles in identifying and executing growth opportunities in their previous roles as managers of Riverstone portfolio companies, sourcing strategic add-on acquisitions and integrating new businesses and employees into the organizations that they led.
“We will aim to build a company that is exposed to attractive secular trends in the oil and gas market through both acquisition and direct investment.”
Last week Riverstone raised £760m through its new London-listed vehicle Riverstone Energy.
The amount raised was between its £670m and £1.5bn range, with shares selling at £10 each.
The fund will focus on investments in global energy exploration and production.
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