HOUSTON—On the occasion of its 30th anniversary this year, Natural Gas Partners (NGP) is sticking to its long-term investment strategy of following a buy-and-build business model, often taking public its portfolio companies when it can.
The model apparently works pretty well for the Irving, Texas-based private equity (PE) firm. It never lost money in its first 11 PE funds for energy. NGP Energy Capital Management has $20 billion in commitments from limited partners and is raising its 12th fund. The last one, NGP Natural Resource Fund XI, closed in January 2015 at $5.3 billion.
“This is still a vital industry. A lot of money is to be made and good careers built,” said Tony Weber, managing director and chair of NGP’s executive committee, speaking recently to the Houston Producers Forum.