Epi-V fund passes the £100 million milestone with landmark LDC deal
1 August 2011
Oil and gas services investment fund Epi-V, has secured £50 million of capital from mid-market private equity firm LDC , taking the total amount raised by the team to £110 million.
Established in 2007, Epi-V is an independent fund which invests £2-10 million of expansion capital in oil and gas service companies developing technology capable of turning hard-to-reach and non-conventional hydrocarbon reserves into economically viable prospects.
The team provides industry insight and technical expertise to commercialise intellectual property and provides the funding and business framework needed to penetrate growth markets in the upstream oil and gas sector.
Epi-V has committed over £60 million in firms including i-Tec, which designs and manufactures highly advanced drilling and intervention products and Darcy, which has developed and is now commercialising a revolutionary sand management system in the well completions arena.
LDC is a cornerstone investor in the fund having invested in two previous rounds of funding over the past four years. This latest £50 million fund will provide Epi-V with additional capital to execute a number of self-originated investments opportunities.
Glynn Williams, Managing Partner at Epi-V, said: "We've developed a differentiated and highly effective investment model focused on developing the technology and building the businesses which will play a key role in unlocking the potential of hard to reach energy reserves.
"The economic and technical challenges this market poses places strategic premiums on innovative products and services capable of maximising reservoir contact and productive capacity, while at the same time simplifying operational processes and reducing time and costs.
"The Epi-V team has the combined knowledge and skill sets required to identify emerging trends and work closely with management to align technical development to market needs and implement the commercialisation and marketing strategy needed to drive sales.
"The support of a major institutional investor such as LDC highlights the strength of our model and this latest deal signifies a significant and sustained commitment to ensuring we continue to create market participants with major roles to play in generating growth and value across the whole industry.
"It also demonstrates LDC's commitment to supporting the UK oil and gas services industry, particularly in Aberdeen, and we'll continue to work closely with them to facilitate strong links with our broad and established contact base."
Darryl Eales, CEO of LDC, said: "Epi-V is a unique proposition in oil and gas services as they are more than just investors, they are group of entrepreneurs who have lived and breathed the industry for the last three decades and who have repeatedly proven their ability to build high quality businesses which quickly become market leaders.
"The fund's investment in Darcy is a prime example of this. The team combined its knowledge and expertise to take an entrepreneur's new technology concept, fully commercialise it for a high value application and built a business which is already making waves in a critical and high value area of the completions market.
"Early on LDC spotted the potential for Epi-V to become a significant player in this market and we are reiterating our commitment to the fund by providing a further significant tranche of capital to support them in their next phase of development."
Epi-V's current portfolio comprises Darcy, i-Tec, Moorland, Guardian and Tarblaster.
LDC, part of the Lloyds Banking Group, is the UK's leading mid-market private equity firm and has a current portfolio of over 60 businesses valued in excess of £2 billion.
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