Northern Energy Capital (NEC) and Roundtable Capital Partners have reach first close of NEC Fund I Canadian at about US$45 million. The fund will invest in oilfield services and related industrial businesses in Canada.
The oilfield services are in troubles due to the most important downturn in its history and the financial and operating capabilities of many of the stakeholders have been affected. At the same time, there are several signs of an upturn in oil & gas supply and demand fundamentals. Although the pace of this recovery is not clear, the demands on key services as the sector recovers will generate several opportunities.
The fund aims to participate in the recovery of the sector by funding oilfield services and related industrial businesses. It will be managed by Roundtable, whose portfolio team includes Miles Lich (Northern Plains Capital Corp.), Jim Allan (Roundtable) and Ken Mullen (Savanna Energy Services Corp.). According to sources, the team commented:
“Smart investing is understanding the fundamentals of a sector, the fundamentals of key industry participants in that sector, and tolerating the volatility of activity and economic results. With a five-year term on the fund, we are excited by the potential returns we can generate for our investors.”