New York-based private equity giant Warburg Pincus has led a consortium investing around $260m in Antero Resources, a company formed to explore for natural gas.
Other investors involved are Yorktown Energy Partners, an energy-dedicated private equity firm, and Lehman Brothers Merchant Banking Group.
Warburg Pincus Managing Director Peter R Kagan said that the firm was very impressed with managers Paul Rady and Glen C Warren. ‘This investment is consistent with our practice in the energy sector of backing strong management to build meaningful companies,’ he added.
Immediately after receiving the funding, Antero used a portion of it to acquire a mid-continent property containing around 20bn cubic feet of proved reserves. The start-up will focus mainly on the Rocky Mountains and mid-continent regions of the US.
Warburg Pincus has invested around $400m in early-stage exploration and production companies over the last 12 years. The size of this investment suggests the increasing attractiveness of the energy sector to private equity firms.
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