First Reserve Celebrates 30 Years of Global Energy Investing
GREENWICH, Conn., HOUSTON, LONDON, and HONG KONG, Feb. 11, 2013
GREENWICH, Conn., HOUSTON, LONDON, andHONG KONG, Feb. 11, 2013 /PRNewswire/
--First Reserve today announced that it is celebrating its thirtieth year in
global energy investing, making it the oldest and largest global private
equity firm exclusively focused on energy.
Having begun their careers in energy investing in the early 1970s, William
"Bill" Macaulay and John Hill co-founded First Reserve in 1983 with the
takeover of several distressed private energy funds. Since that time, the Firm
has raised more than USD $23 billion of aggregate capital since inception and
now maintains the largest energy-focused private equity investment team in the
industry. Its 41 active portfolio companies in the Buyout Funds and
Infrastructure Fund trade on five market exchanges and operate in
approximately 50 countries.
"Back when John and I founded First Reserve, the energy industry was in
disarray and there was little institutional interest in oil and gas
investments," said First Reserve Chairman, CEO and Co-Founder Bill Macaulay.
"The opportunity set began to change dramatically in the 1990s with a wave of
worldwide industry consolidation. We were able to capitalize on this market
transformation by leveraging our strategy of building value by building
companies, while maintaining our focus on helping investors to reach their
The Firm's initial focus was primarily on Exploration and Production (E&P)
companies in the United States. It went on to leverage its E&P expertise
internationally, and to invest across the energy value chain, including
Equipment and Services (E&S).
National Oilwell Varco is one of the worldwide leaders in E&S and was a First
Reserve portfolio company from 1996 – 2001. Pete Miller, President and CEO of
National Oilwell Varco, said, "First Reserve represented a strategic advantage
for us as a private equity partner and I believe they played a key role in
where we are today. The team brought more than capital to the table; their
knowledge and relationships played an important part in shaping our growth
strategy and accelerating our consolidation of the offshore equipment and
services industry that began in the late 1990s and continues on today."
In addition to E&P and E&S, First Reserve invests in the midstream/downstream
and energy infrastructure sectors, among others. Its investments have included
Bahamas Oil Refining Company International Limited (BORCO), sold to Buckeye
Partners in 2011, and PBF Energy that went public on the New York Stock
Exchange in December 2012.
Complementing First Reserve's sector strategy is an enduring network of
industry relationships that the Firm has cultivated worldwide, ranging from
regional companies to national and international oil majors.Leveraging this
network, 85 percent of the current active investments of the Buyout Funds and
the Infrastructure Fund were sourced in a proprietary manner as of December
31, 2012.The Firm also utilizes its relationships to back proven management
teams in repeated transactions.For example, Deep Gulf I and Deep Gulf II.
GE Chairman and CEO Jeffrey R. Immelt commented, "At GE, we've bought
companies from First Reserve, sold assets to them, and partnered together on
new ventures for almost 30 years.The integrity of the team, depth and breadth
of their industry knowledge, and global reach, consistently delivers strategic
value to our business."
As vehicles for growth, First Reserve's portfolio companies are also job
creators. The Firm's active controlled portfolio companies employed
approximately 40,000 people worldwide as of September 30, 2012, including 22
percent of employees covered by collective bargaining agreements.The number
of employees at these companies has grown by nearly 14,000 since the companies
were acquired by First Reserve.
Concluded John Hill, Vice Chairman and Co-Founder of First Reserve, "I am
proud of what we have accomplished together with our investors, portfolio
companies and strategic partners. I believe that our unique experience in
understanding and capitalizing on interdependent and cyclical energy trends
for 30 years has served us well and will continue to guide us forward through
the next thirty years and beyond."
About First Reserve
Since 1983, First Reserve has focused exclusively on energy investing; helping
shape tomorrow's industry leaders while remaining committed to supporting
investors in reaching their goals. With 30 years of industry insight,
investment expertise and operational excellence, the Firm has cultivated an
enduring network of global relationships and raised more than USD $23 billion
of aggregate capital since inception, putting both to work to complete more
than 450 transactions (including platform investments and add-on acquisitions)
on six continents. Today, First Reserve has the largest energy‑focused
private equity investment team in the industry. Its portfolio of companies
operate in approximately 50 countries and span the energy spectrum, including
natural resources, equipment and services, midstream / downstream and
infrastructure, among others. First Reserve is headquartered in Greenwich CT
with offices in Houston, London and Hong Kong. Visit us at
www.firstreserve.com for more information.
Caroline Harris, Prosek Partners Michael Henman, Cubitt Consulting
1 212-279-3115 ext.222 +44 020 7367 5100
SOURCE First Reserve Corporation
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