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The Blackstone Group and GSO Capital Partners Join the Investors of Crestwood Midstream Partners, LLC
An announcement has been made by the Crestwood Midstream Partners, LLC, regarding its new investors- The Blackstone Group (“Blackstone”) and GSO Capital Partners LP (“GSO”), both of which have acquired ownership interests in Crestwood. Earlier there were $150 million in the equity capital commitments, but now Blackstone and GSO, along with Kayne Anderson and Crestwood Management, LLC, will provide Crestwood with $500 million in equity capital commitments. This increase will help the company in the acquisition and development of North American midstream assets and businesses.
Crestwood Midstream Partners, LLC, is a private midstream company, which was formed in November, 2007, by a management team led by the renowned industrialist, Bob Phillips. The company’s headquartes are in Houston, Texas. It aims at utilizing management’s extensive industry experience and relationships to enable its growth through the acquisition of strategic assets, the recruitment of experienced midstream personnel and investment in organic infrastructure projects.
Bob Phillips, President and CEO of Crestwood, said, “I am pleased to announce the addition of The Blackstone Group and GSO Capital Partners as investors in Crestwood.” While talking about the new investors of the company, he said, “We view Blackstone and GSO as extremely knowledgeable energy investors which, along with Kayne Anderson, provide Crestwood the financial support and industry credibility to become a significant midstream company. The expansion of our investor base also validates the investment strategies we are pursuing and positions Crestwood to be at the forefront of midstream activity over the coming years.”
Danny Weingeist, Senior Managing Director of Kayne Anderson added, “We welcome Blackstone and GSO into Crestwood and look forward to the benefits of partnering with these leading private investment firms to pursue a broad range of midstream investment opportunities that are emerging in the current marketplace.”
Blackstone and GSO, both are of the view that the midstream sector of the energy industry offers significant growth opportunity, which is supported by record supply development in many regions of the US. David Foley, Senior Managing Director of Blackstone, stated, “We have been closely following the developments in the midstream sector and believe the Crestwood management team possesses a deep understanding of the sector and has the credibility and relationships to build a world-class midstream business and deliver attractive returns to our investors. Blackstone has successfully backed management teams in startup ventures in other segments of the energy sector such as Sithe Global Power (power plant development) and Kosmos Energy (oil exploration).”
Blackstone has a long and distinguished track record of investing in the energy sector. It is one of the world’s leading investment and advisory firms with total assets under management of approximately $113 billion. The companies in which Blackstone invests, the companies it advises and its investors get positive economic impact and long term values. It is one of the world’s leading investment and advisory firms with total assets under management of approximately $113 billion
GSO Capital Partners LP is also a leading credit-oriented alternative asset manager with approximately $23 billion of assets. In March, 2008, it was acquired by The Blackstone Group L.P., following which Blackstone’s debt investment businesses were combined with GSO’s operations. GSO manages senior debt funds, hedge funds and mezzanine funds focused on the leveraged finance marketplace.
Kayne Anderson Energy Funds is a division of Kayne Anderson Capital Advisors, L.P. It has approximately $9 billion of assets under management, and it manages $1.85 billion of private capital for investment in the energy industry. Kayne Anderson Energy Funds invests private capital in high-growth exploration and production, midstream, and oilfield services companies.