- Tailwater Capital LLC formed from energy team at HM Capital
- Jason Downie, Edward Herring leading Tailwater Capital
- Tailwater teams up with Landmark Partners
Dallas-based TW/LM Acquisition LP disclosed $461 million as the total offering amount and the total amount sold in a May 31 Form D filing with regulators. TW/LM Acquisition LP includes $425 million raised for Tailwater Capital Energy Fund I LP, the first fund launched by Tailwater Capital, a source told Buyouts. The first date of sale for TW/LM Acquisition LP is listed as May 17.
Jason Downie appears as managing partner of the general partner of TW/LM Acquisition LP. Downie is also managing partner of Tailwater Capital, according to a May 20 release announcing the spinout of Tailwater Capital from HM Capital.
Tailwater Capital did not respond to a phone call and an email from Buyouts.
Tailwater Capital and Simsbury, Connecticut-based Landmark Partners said last month they would team up to complete the secondary purchase of HM Capital’s energy portfolio, in an effort led by Downie and Edward Herring, another HM Capital veteran. Herring’s name also appears on the filing for TW/LM Acquisition LP. The announcement of Tailwater Capital did not disclose any further details on the financial structure of the firm.
The portfolio to be managed by the Tidewater/Landmark Partners fund includes SunTerra Well Services, BlackBrush Oil & Gas and TexStar Midstream Services. Downie and Herring sourced the acquisition of these portfolio companies while at HM Capital, according to the release.
Downie and Herring are leading a team to invest in the midstream and upstream energy sectors at Tailwater Capital. “The Tailwater team is committed to building strong relationships and industry leading companies and, in turn, delivering exceptional returns to our investors,” Downie said in a prepared statement.
Ian Charles, a partner at Landmark Partners, cited Tailwater’s “excellent team and infrastructure” in a prepared statement.
Tailwater marks a second recent offspring from HM Capital, the remnant of legendary buyout shop Hicks, Muse, Tate & Furst. In March, the Canadian Pension Plan Investment Board completed a $468 million deal to create a special purpose vehicle to buy and hold food assets contained in the HM Capital Sector Performance Fund.
Landmark Partners recently drew headlines in Buyouts when Barry Miller, formerly head of private equity for the New York City Retirement Systems, joined the firm after the pension fund made a $400 million commitment to Landmark Equity Partners XV LP, the firm’s latest flagship secondary fund. The move by the pension official raised questions.
In the launch of Tailwater, Weil, Gotshal & Manges LLP, led by partner Rodney Moore, represented Tailwater and HM Capital. Landmark Partners was represented by a team from Kirkland & Ellis LLP led by partner Michael Belsley.
Landmark Partners is a secondary funds and real estate investment specialist that provides liquidity to owners of interests in venture, mezzanine, buyout, and real estate limited partnerships.