CAMBRIDGE, Mass., Sept. 10, 2012 /PRNewswire/ -- Intervale Capital, LLC ("Intervale") today announced the final closing of its second fund with capital commitments of $376 million. Intervale Capital Fund II, L.P. and affiliates ("Fund II") exceeded its target of $325 million and investor demand for the fund exceeded the $350 million cap on limited partner commitments. Intervale raised $281 million for its first fund in 2008 and recently completed its first two exits. Casedhole Solutions, Inc. was sold to C&J Energy Services, Inc. (NYSE: CJES) in June 2012 for $278 million. Ulterra Drilling Technologies, L.P. was sold to ESCO Corporation in August 2012 for $325 million.
Fund II will employ the approach developed in Intervale's first fund of executing privately negotiated, control investments in lower middle-market companies in the oilfield services and equipment industry (the "OFS" industry). Fund II will target companies located predominantly in North America and Europe.
Intervale closed its first investment in Fund II in December 2011 with the purchase of Allied Oil & Gas Services, LLC. Allied is headquartered in Fort Worth, Texas with locations in West Texas, Kansas, Pennsylvania and West Virginia. The company provides well cementing and acidizing services to customers in the Permian Basin, Mid-Continent and Appalachian Basin regions.
Fund II's limited partners represent a diverse group of institutional investors, including university endowments, pensions, funds of funds, foundations, insurance companies and sovereign wealth funds. In addition to limited partner commitments of $350 million, the Intervale team and affiliates committed $26 million to Fund II.
Fund II is led by partners Charles Cherington and Erich Horsley, who have executed more than 15 OFS transactions together since 2006. Charles Cherington commented, "We are delighted to reach our hard cap in a difficult fundraising environment and we are eager to selectively deploy the new capital in attractive segments of the OFS space."
Credit Suisse Securities (USA) LLC, served as Intervale's placement agent and Choate Hall & Stewart, LLP provided legal counsel.
For further information, contact: Christine Smoragiewicz, CFO (617) 497-8282
About Intervale Capital
Intervale Capital is an energy-focused private equity firm, with headquarters in Cambridge, Massachusetts, and an office in Houston, Texas, investing exclusively in middle-market oilfield services and manufacturing companies and related technologies. The firm has more than $650 million under management and is currently investing from its second fund.
Recent Intervale transactions include:
- August 2012: Sale of Ulterra Drilling Technologies L.P., a Fort Worth, TX-based company that manufactures and rents matrix and steel-body polycrystalline diamond compact (PDC) bits and drilling optimization tools for use in all the major oil and gas basins in the U.S., to ESCO Corporation for $325 million
- June 2012: Sale of Casedhole Solutions, Inc., a leading multi-regional, independent provider of cased-hole wireline and other complementary services for energy producers, to C&J Energy Services, Inc. (NYSE: CJES) for $278 million
- May 2012: Acquisition of the subsea controls business of Weatherford International by Proserv Group, Inc., a leading global energy production technology services company headquartered in Aberdeen, Scotland
SOURCE Intervale Capital