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Warburg Pincus leads $500m investment in Navitas

The global private equity firm has led a group of individuals to invest up to $500m in Navitas Midstream Partners, a producer-focused midstream company.

Private equity firm Warburg Pincus has led a group of individuals in investing up to $500 million in Navitas Midstream Partners, a producer-focused midstream company, according to a statement.

The individual investors are comprised of the management team from Navitas, which seeks to develop, acquire, and operate midstream assets across multiple basins in North America, and other individuals, the statement said.

“We are pleased to partner with Navitas' best-in-class management team and to leverage their industry leadership and successful track record to build a business of scale. With our producer-focused, long-term orientation to develop and operate assets, we believe Navitas is well-positioned to become a leading player in the North American midstream landscape,” In Seon Hwang, managing director at Warburg Pincus, said.

Vinson & Elkins is the legal adviser for Warburg Pincus for the line-of-equity investment.

“We are delighted to have the support of Warburg Pincus to assist us in developing and growing the business. The firm's deep industry experience and patient capital provides us with a competitive advantage in today's midstream marketplace,” Navitas’ senior executive R. Bruce Northcutt said.

Northcutt was the president and chief executive officer of Copano Energy until its sale of Kinder Morgan Energy Partners for about $5 billion in May last year. The other two members from Navitas’ management team are Bryan W. Neskora and James E. Wade, who were senior members of the management team at Copano.

The senior management team, which collectively has more than 80 years of industry experience, has a track record of successful project execution in numerous basins across the midstream value chain including gathering, treating, processing, fractionation and transportation of natural gas, NGLs, condensate and crude oil, according to the statement.

Northcutt, Neskora and Wade served as executives-in-residence at Warburg Pincus, where they worked in close collaboration in the early stages of Navitas' development, according to the statement.

Warburg Pincus has more than $37 billion in assets under management, and has invested or committed over $9.5 billion across more than 50 energy investments around the world involved in oil and gas exploration and production, midstream, downstream, power generation, oilfield technology and related services, mining and alternative energy development.

Notable investments include Antero Resources, Bill Barrett Corporation, Oak Energy, Encore Acquisition Company, Kosmos Energy, Laredo Petroleum, MEG Energy, Newfield Exploration, Spinnaker Exploration and Targa Resources.