The energy & power team provides portfolio advisory services

Simmons Private Equity ("SPE")

Our investment strategy is to identify attractive investments in the energy industry where the energy & power team has domain knowledge. Consistent with our approach, the criteria we use when we evaluate an investment typically include the following:

• Companies within the energy & power team established areas of industry expertise, namely the oil and gas services sector
• Commercial businesses with significant revenue and earnings streams (typically up to £7 million of LTM EBITDA) that are underpinned by strong back order backlogs
• Growth companies with high gross margins and strong cash generation but constrained in terms of resources (financial and/or human capital)
• An international and diversified offering across both capex and opex
• Companies that have built top-tier positions within growth and emerging sub-market verticals and possess technology, IP or other attributes that create barriers to entry
• Talented management teams capable of executing business plans with aligned equity incentives and appetite to become part of a larger group
• Adopt a ‘buy-and-build’ platform strategy, packaging the niche offerings of respective businesses to present a cohesive market-facing service offering
• Owner managers typically roll-over a significant portion of their existing stake into our platform vehicle
• No fixed exit term (other than life of the fund)

Investment Criteria

Size of investment: Up to £10 million - possibly larger if a co-investment partner is involved

Stage of investment: Revenue and profit generating

Industries: Oil and gas services sector

Geography: Worldwide remit

Target EBITDA: < £7 million

Board representation: Required for all investments

Typical holding period: No fixed term apart from life of the fund

Type of transaction: Focused on investments in equity and equity-linked securities that finance company growth. We also invest by participating in liquidation events and providing development capital, which meet our hurdles for growth potential and investor return.

Experienced investment team: SPE’s private equity team collectively has significant experience in both energy investment and M&A advisory that spans over 75 years and multiple market cycles.

Established origination network: SPE has a plethora of industry contacts and professional advisors. This network has deep industry knowledge and is used to keep in contact with growth companies, key executives, other private equity firms and opinion leaders in their respective industry sectors.

Expansive diligence capability: SPE has access to research analysts and industry contacts to bring independent insight into companies, market trends and industries when we conduct our diligence on prospective investment opportunities. The Piper Sandler energy & power research analysts cover approximately 140 publicly listed companies, primarily in the upstream, downstream, midstream and other energy segments. Research analysts also produce significant industry reports and regularly sponsor and attend specialized industry conferences.

Highly selective investment process: SPE has a thoughtful and selective investment process. Substantially all transactions require a collaborative effort between SPE and our network of industry relationships.

Differentiated ability to add value: SPE assists portfolio companies by advising senior management on broad strategic initiatives, facilitating new business relationships, supporting financial management and planning and providing guidance with respect to capital raising activities and acquisition strategies.

Understanding and controlling liquidity alternatives: Before making an investment, SPE considers potential exit alternatives. The bundled services approach together with geographical expansion is expected to transform the offering thereby making it more attractive to potential buyers resulting in multiple arbitrage on exit. SPE has significant experience positioning portfolio companies for and facilitating exits, including sales to both trade buyers and private equity.