The Carlyle Group Makes Inaugural Energy Mezzanine Investments
New York, NY – Global alternative asset manager The Carlyle Group today announced that its newly-formed energy mezzanine business has closed its first two investments, deploying $40.5 million of mezzanine capital into Core Minerals ($20 million) and Black Raven Energy ($20.5 million), both energy exploration and production companies. Core and Black Raven will use this capital for acquisitions and to develop reserves.
Core Minerals is an independent oil and natural gas exploration, development and production company with more than 30 wells spread across the Illinois Basin in Indiana, Illinois and Kentucky. Core’s strategy is to develop low-risk oil assets and opportunistically acquire additional reserves maximizing capital efficiency and returns.
Black Raven Energy is a private exploration and production company that owns mineral rights on 200,000 net acres in the Denver-Julesburg Basin of Northeast Colorado and Southwest Nebraska. Carlyle’s investment allowed the company to acquire oil assets near existing operations, substantially increasing cash flow and collateral value.
David Albert, Managing Director and Co-head of the Carlyle Energy Mezzanine business, said, “We are pleased with the completion of our first two investments. Core Minerals and Black Raven Energy both have strong management teams with proven track records and attractive asset bases with long-life oil reserves and shallow decline rates.”
The Carlyle Energy Mezzanine Opportunity team, which targets investments in the energy and power sectors including power generation, renewable energy, oil and gas production, oilfield services and midstream infrastructure, is part of Carlyle’s Global Market Strategies business, which comprises an array of long/short credit products, structured credit, mezzanine and distressed products.
Core Minerals was advised by Donovan Capital and Black Raven Energy was advised by Stifel Nicolaus.
About Core Minerals
Core Minerals, based in Evansville, IN, is an exploration and production company focused on acquiring and optimizing producing oil properties in the Illinois Basin and other analogous areas. Further information on Core Minerals may be found on the Company’s website at coreoperating.com.
About Black Raven
Black Raven Energy, based in Denver, CO, is an exploration and production company that owns mineral rights to 200,000 net acres in the DJ Basin of Northeast Colorado and Southwest Nebraska. The company has entered into a joint venture to develop these gas-focused assets and separately, recently acquired a portfolio of primarily properties proximate to existing operations. Black Raven’s strategy is to continue the joint venture and independently develop the oil-weighted reserves. Further information on Black Raven can be found on the Company’s website at blackravenenergy.com.
About The Carlyle Group
The Carlyle Group is a global alternative asset manager with approximately $153 billion of assets under management across 89 funds and 49 fund of fund vehicles as of March 31, 2011*. Carlyle invests across four segments – corporate private equity, real assets, global market strategies, and fund of funds solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America focusing on aerospace, defense & government services; consumer & retail; energy; financial services; healthcare; industrial; technology & business services; telecommunications & media; and transportation. The Carlyle Group employs more than 1,100 people in 20 countries. Web: www.carlyle.com; Case Studies: www.carlylegroupcreatesvalue.com; Video: www.youtube.com/OneCarlyle. (*Includes acquisitions of AlpInvest Partners B.V. and Emerging Sovereign Group LLC on July 1, 2011.)