Lower Middle-Market Investment Strategy
Energy Spectrum manages private equity funds that follow a venture capital strategy and make direct investments in lower-middle-market companies that acquire, develop and operate North American midstream energy assets. Energy Spectrum assists management teams in starting and building solid growth-oriented companies, specifically focused on companies that can grow through basic “buy-and-build” strategies, or greenfield development opportunities. The ESP Funds seek “throughput” assets, such as crude oil and natural gas gathering and transportation, processing and treating facilities, storage facilities and other infrastructure assets. Energy Spectrum’s target equity investment is $50-200 million. To date, the ESP Funds have invested in more than 60 portfolio companies.
Partnering with Premier Management Teams
Energy Spectrum is uniquely positioned as a partner of choice for management teams seeking to build energy companies and create equity value. Energy Spectrum looks for management teams that possess the following:
- Entrepreneurial, experienced and well connected in the marketplace;
- Deep knowledge of industry dynamics and specific geographic areas or assets;
- Demonstrated ability to originate deal flow, evaluate opportunities and risk profiles and execute on development and acquisition strategies;
- Seek to build a middle-market company intending to exit in three to seven years;
- Willingness to invest a meaningful amount of their net worth, while participating in potentially lucrative performance-based incentive compensation;
- Devise a compelling investment thesis with strategies for building value throughout the energy cycles; and
- Seek a proactive, value-adding business partner – not just a financing source.
WHAT THEY’RE SAYING:
“Frontier is proud to continue its legacy business by partnering for the fourth time with Energy Spectrum Capital to continue our prosperous 15-year relationship. Energy Spectrum Capital has been an outstanding partner offering unwavering support and deep experience that has led to successful ventures year after year. We look forward to expanding on the momentum achieved with the recent Alpha Crude Connector project to build assets that will result in continued success for our producers and partners.”
President and CEO
Frontier Midstream Solutions IV