OFS Energy Fund II announced that it has held its final close and secured a total of $90 million in capital commitments primarily from institutional investors for its second private equity fund with a focus on acquiring and recapitalizing middle-market companies in the energy service industry. Approximately 45% of the fund commitments are from energy industry executives with substantial operating experience.
With 55% of the fund coming from large institutional investors, OFS has access to a greater pool of capital in order to close much larger transactions should they become available.
The company exceeded its initial target of $75 million in commitments for the fund and also reached this goal quicker than the one-year target from initial closing.
The OFS principals established Dorado Energy Partners, their first fund, in 2008 with $46.5 million of committed equity capital provided primarily by high net worth individuals. The first fund was focused on the same strategy of investing in energy service companies and generated an approximate 3.5 times cash-on-cash return in three years.
The entire operating team from Fund I (Dorado Energy Partners) remains together in OFS Fund II. This includes Bruce Ross, Jerad McMayon, Beau Ross, Scotty Reynolds and Rhonda Lusk. However, another associate, Ross Canion, has been added to the team. Canion will help analyze, evaluate and execute new investment opportunities and assist with deal sourcing and growth initiatives.