HudsonField LLC, the energy merchant bidding to fill the gap left by Wall Street’s retreat from commodities lending, has secured backing from a group of private investors led by former American Express Co. chief Harvey Golub.
The group, which also includes GF Investments, has made a “significant equity investment" and will provide growth capital to New York- and Houston-based HudsonField, the company said in a statement Monday, without disclosing the amount. Golub will join HudsonField as chairman.
HudsonField provides investment banking, hedging, transportation and marketing services to oil and natural gas businesses in North America. In October, it announced a partnership with AllianceBernstein Holding LP to provide more than $1 billion in financing to the sector, which has been slammed by a global slump in energy prices. The firms want to fill an opening left by some of Wall Street’s biggest banks, which have cut lending and retreated from commodities trading amid tighter regulations.
“The rules have changed in the financial services marketplace," Golub, currently chairman of New York-based investment bank Miller Buckfire & Co., said in the statement. “There is a growing demand for HudsonField’s services, and this is the right team to meet those needs."
The money will be used for “midstream assets, balance sheet support for marketing and transportation, and capital for other HudsonField products and services," the company’s chief executive officer, Ben Freeman, said in an e-mail. The CEO is a former global head of oil derivatives trading at Goldman Sachs Group Inc.