Lane42 Partners with Karis to Acquire Aqua Terra Permian
In a significant step towards expanding its portfolio in the energy sector, Lane42 Investment Partners, LLC, recently announced its acquisition of Aqua Terra Permian, LLC. This strategic move comes in collaboration with Karis Midstream Partners, and positions Lane42 for continued growth in midstream infrastructure services.
Aqua Terra Permian's Value Proposition
Aqua Terra Permian is renowned for its core operations within the energy infrastructure space, particularly its robust gathering, transportation, and disposal well networks within the Permian Basin. The company has established itself as a key player, leveraging its deep technical expertise and longstanding customer relationships to deliver reliable services. Its strong reputation for operational reliability is supported by long-term contracts with investment-grade clients, which adds to its stability in the industry.
Impact of the Acquisition
David Bernfeld, a partner at Lane42, emphasized that this acquisition enhances Aqua Terra Permian's financial position while also providing the necessary capital to support its long-term growth plans. Through this partnership, Lane42 illustrates its commitment to offering tailored capital solutions that empower businesses with strong management teams. The collaboration with Karis aims to position Aqua Terra as a more formidable player in the market.
Leadership Insights and Future Goals
As part of this acquisition, Odely Sakazi and David Melton from Karis will lead the newly acquired platform, with Sakazi assuming the role of CEO and Melton as COO. In their vision for Aqua Terra, they anticipate providing enhanced services to existing customers while strategically expanding operations. Both leaders have a wealth of experience in the midstream industry, having previously built successful energy platforms, and aim to create value for stakeholders in their new endeavor.
Legal and Financial Guidance
The transaction was guided by reputable firms, with Vinson & Elkins serving as legal counsel and Houlihan Lokey acting as the exclusive financial advisor for Lane42. Stephens Inc. provided counsel to Karis Midstream Partners, while Kirkland & Ellis LLP represented Aqua Terra Permian in this acquisition.
About Lane42 Investment Partners
Lane42 Investment Partners specializes in capitalizing on opportunities within both public and private markets, focusing on inefficiencies and the bridging of debt and equity financing. Founded by Scott L. Graves, who boasts over 30 years of investment experience, the firm was initially backed by a substantial capital commitment. Their mission emphasizes integrity, collaboration, and the alignment of interests, which they believe are crucial for fostering growth in their portfolio companies.
About Karis Midstream Partners
Karis Midstream Partners was founded to create a leading midstream company, leveraging the extensive industry expertise of its founders. With their combined 40 years of experience, they plan to enhance Aqua Terra Permian’s capabilities and service delivery, ensuring they meet the evolving demands of their customers.
Frequently Asked Questions
What is the significance of Lane42's acquisition of Aqua Terra Permian?
This acquisition strengthens Lane42's position in the energy market and enhances Aqua Terra Permian's growth potential through increased capital.
Who will lead Aqua Terra Permian after the acquisition?
Odely Sakazi will serve as CEO, while David Melton will take on the role of COO post-acquisition.
What services does Aqua Terra Permian provide?
Aqua Terra Permian provides essential energy infrastructure services including gathering, transportation, and saltwater disposal in the Permian Basin.
Who advised Lane42 during the acquisition?
Lane42 was advised by legal counsel Vinson & Elkins and financial advisor Houlihan Lokey during the transaction.
What is Lane42's mission as a firm?
Lane42 aims to deliver value to investors and exceptional partnerships to its portfolio companies with a focus on integrity and collaboration.
