OFS Energy Fund News

September 28, 2012

OFS Fund Secures $90 Million in Capital Commitments for 2nd Private Equity Fund

 HOUSTON (Sept. 28, 2012) - OFS Energy Fund II announced today that it has held its final close and secured a total of $90 million in capital commitments primarily from institutional investors for its second private equity fund with a focus on acquiring and recapitalizing middle-market companies in the energy service industry. Approximately 45 percent of the fund commitments are from energy industry executives with substantial operating experience. 

 
With 55 percent of the fund coming from large institutional investors, OFS has access to a greater pool of capital in order to close much larger transactions should they become available.
The company exceeded its initial target of $75 million in commitments for the fund and also reached this goal quicker than the one-year target from initial closing.
 
The OFS principals established Dorado Energy Partners, their first fund, in 2008 with $46.5 million of committed equity capital provided primarily by high net worth individuals. The first fund was focused on the same strategy of investing in energy service companies and generated an approximate 3.5 times cash-on-cash return in three years.
 
“We’re very pleased to have exceeded our targets in securing capital commitments for our second fund. We also are proud that all of the chief executive officers who ran companies in our first fund also are investing in our second fund,” said Bruce Ross, managing partner of OFS.
 
“Having our first fund’s chief executives return to invest in our second fund helps demonstrate how well we work with operating companies’ management teams and that we can truly add value. What’s more, this reflects these executives’ belief that we at OFS can do it again with this second fund,” Ross explained.
 
The entire operating team from Fund I (Dorado Energy Partners) remains together in OFS Fund II. This includes Ross, Jerad McMayon, Beau Ross, Scotty Reynolds and Rhonda Lusk. However, another associate, Ross Canion, has been added to the team. Canion will help analyze, evaluate and execute new investment opportunities and assist with deal sourcing and growth initiatives.
 
OFS’ team has decades of experience in the energy service market, including direct operating responsibilities, which has provided a significant benefit between OFS and companies looking for rapid growth. For example, Ross was CEO of Lone Star Fasteners (an energy hardware company) that saw revenues grow from $20 million to $150 million in four years and operations expand to 1,000 employees in eight offices around the globe. 
 
OFS’ investment strategy is to acquire and grow lower middle market energy service companies with enterprise values of between $5 million and $100 million.
 
OFS’ second fund has invested approximately $16 million in two portfolio companies—Buckhorn Energy Services, a saltwater disposal and oilfield waste handling company in North Dakota, and Vision Oil Tools, a rental tool and fishing company serving the Rockies and North Dakota markets.
 
About OFS Energy Fund
Houston-based OFS Energy Fund is one of the few professionally managed private equity firms that specializes in acquiring and recapitalizing lower middle-market companies with identifiable paths for organic and possibly acquisitive growth. OFS seeks to provide growth equity solutions for business owners, such as buyouts, recapitalizations and growth equity investments. We support the development of management infrastructure, appropriate governance, professionalization of reporting and tracking of operating metrics. We also add value by lending industry relationships, ideas for operational improvement and support in developing strategic plans and initiatives.
 

OFS Energy Fund
6363 Woodway Drive, Suite 900

Houston TX 77057
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Main Number: (713) 580-2727