Intervale Closes $280MM Debut Buyout Fund
Monday, June 23, 2008
Intervale Capital, LLC has closed its debut buyout fund, Intervale Capital Fund, L.P. (together with its affiliate partnership), with capital commitments in excess of $280 million. The Fund exceeded its target of $200 million. With its planned use of leverage on transactions, Intervale expects to deploy more than $500 million of purchasing power to acquire energy service companies. Intervale's first fund is one of a handful of funds in the world focused exclusively on oilfield services buyouts. Intervale distinguishes itself from its peers by targeting service company platforms that either own or can acquire technologies which reduce drilling costs, or enable drilling to take place for the first time.
The Fund expects to acquire control positions in six to eight platform companies in North America and Western Europe. Intervale invests in partnership with strong management teams seeking capital and guidance in building high-growth companies in the oilfield services industry. Intervale works closely with management on strategy, acquisitions and growth planning during the Fund's typical investment holding period of four to six years.
Intervale has already completed two investments in the Fund. Charles Cherington, a Managing Partner and co-founder of Intervale noted, "Both transactions involve companies deploying technology through a well-established platform company to grow more rapidly than the underlying market. In both deals, management owns a significant stake, and works closely with Intervale to manage strategy and long-term growth."
Intervale's limited partners include a range of sophisticated institutional investors including university endowments, foundations, pension funds and international investors. The Fund is led by two managing partners: Curtis Huff, in the firm's Houston office, and Charles Cherington in the Boston office. Mr. Huff and Mr. Cherington have led over 100 transactions in their careers, including ten which they have executed together since 2006.
In commenting on the Fund's closing, Mr. Cherington said, "Intervale's first fund will build on Curtis' and my oilfield investment experience. I am delighted to be partnering with Curtis who has a twenty-year track record of being ahead of the pack when it comes to investing and developing outstanding oilfield service companies."
Greenwich, CT-based Champlain Advisors, LLC, a global fund placement and investor relations advisory firm, served as Intervale's placement agent in raising the fund.