Independent private equity firm Energy Ventures has allocated $200m to stimulate North Sea businesses amid challenging times for the oil and gas industry.
The organisation is planning to invest in companies that require access to finance for their continued growth.
Energy Ventures’ Aberdeen-based investment director Tomas Hvamb said: “Energy Ventures is one of the few oil and gas private equity funds investing at this time. In the past 20 months we have made three platform investments in the North Sea and a total of 11 investments including add-ons in the same period.
“The additional funding of $200m which we have set aside is testament to the commitment we have to the area. We believe in the North Sea and the opportunities it continues to offer for domestic and international growth.”
Energy Ventures plans to invest between $10m and $40m in each new partnership with management teams in service and technology companies with high-growth potential.
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Hvamb added: “Energy Ventures will invest in proven companies where we can see where our capital can provide a strong capital base to support the company and management in their next growth phase.
"At a time when activity levels in the industry have been down, many companies are under pressure from the banks to de-lever their balance sheet and we can assist in this.
“By providing additional working capital and by working in partnership with them, we can help them move forward positively, while investing in their future.”
Energy Ventures is an independent private equity firm planning investment in companies that deliver a marketable, proprietary product or service with potential in the upstream sector.
Right from initial investment to exit, the firm partners with portfolio companies for effective use of capital and expertise.
Energy Ventures partner Greg Herrera said: “Energy Ventures has a proven track record of investing in high-growth companies, not just in the North Sea, but across the globe.
“Our model is based on supporting growth of differentiated service and technology companies that provide solutions to long-term oilfield challenges, which we view as the key to improving declining production levels and boosting further re-investment.
“The additional funding that we are currently making available is there to help businesses in the North Sea who may be finding trading conditions particularly challenging just now due to the low oil price. We are keen to partner with them to help them through this period and beyond.”
Image: Energy Venture partner Greg Herrera (left) and Energy Ventures’ investment director Thomas Hvamb (right). Photo: courtesy of Energy Venture.