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Warburg Pincus in energetic week

The global private equity firm Warburg Pincus has made a $150m investment in an exploration and development platform, while in the same week completing a partial exit of German biodiesel producer Petrotec AG.

Private equity firm Warburg Pincus and the management of Broad Oak Energy, Inc. have committed $150 million (€117 million) to Broad Oak for oil and gas exploration and development, Broad Oak said in a statement.

Based in Dallas and founded earlier this year, Broad Oak is a privately held oil and gas company that focuses on onshore US regions. This particular project will concentrate on hydrocarbon basins located between the Texas Gulf Coast, northern Louisiana and New Mexico, the statement said.

Peter Kagan, a managing director at Warburg Pincus who has been with the firm since 1997, assisted with this deal. Kagan specialises in investments in the energy sector.

In related news, another of Warburg Pincus’s energy-related portfolio companies, Petrotec AG, a German producer of biodiesel, recently completed an initial public offering on the Frankfurt Stock Exchange. In this partial exit, approximately 60 percent of Petrotec was floated, the statement said. Petrotec, the selling shareholder, will hold a 40 percent stake in the company.

On Sunday, Petrotec said on Sunday that it had set a selling price of €17 per share. Today, Petrotec closed at €17.90.

Warburg Pincus acquired Petrotec in May for an undisclosed amount. The firm reportedly owns 30 percent of the company following the IPO, valuing its investment at $54 million.

Founded in 1966, Warburg Pincus is led by Co-Presidents Charles Kaye and Joseph Landy. Kaye joined the firm in 1986 and helped launch its Asian operations. Landy joined Warburg Pincus in 1985 and focuses on information technology, communications applications and structured investments.