Apollo commits $500m to CSV Midstream

The investment firm’s $500m investment will fund the construction of CSV Midstream facilities in Canada.

Funds managed by US-based Apollo Global Management have committed $500 million to CSV Midstream Solutions Corp, enabling the Calgary-based company to build and operate midstream facilities in the Western Canadian Sedimentary Basin, the companies said in a joint statement.

“We believe our shared-risk model, with capital risk sharing and fee assurances, will provide our customers with reliable expenditure budgets and schedules,” CSV Midstream’s founder and chief executive Daniel Clarke said.

CSV Midstream, which focuses primarily on developing the natural gas energy industry in the Western Canadian Sedimentary Basin, is active in the engineering, design, construction, operation and management of assets, including sweet and sour gas processing, liquids handling and fractionation, and gas gathering and transmission pipelines.

“This strategic partnership with CSV Midstream is a great example of Apollo’s approach to partnering with proven management teams and providing the needed capital and other resources to help launch profitable new businesses in attractive markets,” Apollo partner Rakesh Wilson said.

As of March 31, 2014, Apollo had approximately $159 billion in assets under management in private equity, credit and real estate funds, invested across a core of nine industries, which include commodities, chemicals, distribution and transportation, manufacturing and industrial. In addition to its New York headquarters, Apollo also has offices in Los Angeles, Houston, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong.