Houston-based Rivington Securities, the broker-dealer subsidiary of Rivington Holdings, has announced an engagement with GSO Capital Partners for lending to smaller energy companies.
Under the arrangement, Rivington will assist GSO in identifying, structuring and administering credit and equity co-investment opportunities in the lower mid-market upstream energy sector.
Rivington executives Christopher Wagner and Rick Makin focused on the smaller end of mid-market upstream energy and GSO will partner with the firm to help it network with companies that need debt financing, said Dwight Scott, head of GSO’s energy practice. The transactions will typically be less than $100 million in size, he told PDI. There isn’t an overall target goal for the partnership, though Scott said he expects to continuously ramp it over time.
The Rivington/GSO agreement is focused on sponsor-backed companies. Structures provided by GSO through the Rivington relationship will include traditional debt structures, as well as equity co-investments and structured equity products, said a statement from Rivington.
“In light of current market fundamentals, we see a tremendous opportunity to provide additional capital support to proven management teams and private equity sponsors,” commented Wagner, Rivington's founder.
“The regulatory environment has made it more difficult for many traditional capital groups to deliver creative, more flexible products. We believe the private credit markets are best suited to step in and fill that void,” he added.
“Our decision to partner with GSO was an easy one based on their track record and market reputation. With our energy contacts and GSO's funding sources and financial strength, we believe the opportunity set could be $1 billion of new investments within the first few years.” remarked Rick Makin, a senior managing director with Rivington.
Rivington will continue to provide private equity placement and general advisory services to the upstream energy sector. The firm is an independent investment and merchant banking company specialising in institutional private capital placements to the mid-market upstream energy sector.
Founded in 2002, Rivington has executed 86 private capital and M&A transactions with total volume exceeding $6.5 billion. Rivington Securities is a registered broker-dealer and member of FINRA and SIPC.
GSO is the global credit investment platform of Blackstone, with approximately $81 billion in assets under management.
GSO invests in variety of strategies, including mezzanine debt, distressed investing, leveraged loans and other special-situation strategies. The firm manages private closed-end funds, credit hedge funds, BDCs, CLOs and separately managed accounts.