US buyout firm KKR is to open its first office in Canada, with a view to investing up to $2bn in the energy sector over the next five years, according to the Wall Street Journal.
KKR director Brandon Freiman will move to Calgary from the firm’s New York office. The firm’s investment strategy in the sector will encompass project financing in the oil and gas space, alongside traditional buyouts, he said.
Freiman told WSJ that KKR would look to target upstream oil and gas, midstream pipelines and related infrastructure and energy services. He said, “”Because of the energy revolution that you’ve seen around unconventional technologies, there are a lot of companies with great opportunities that need capital [injections]. So we’ve adopted a much more flexible approach to the market, both in the US and Canada. And so by doing that we’ve come to appreciate there is a lot more we could be doing in both markets.”
In December 2013, the firm invested $250m in Torq Energy Logistics, a private company that provides transportation solutions for producers seeking to transport crude oil by rail car in Western Canada.
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