The uncertainty looming over energy markets amid Covid-19 has not stopped private equity (PE) firm Energy Spectrum Capital from looking to the future as it has agreed to sponsor a new Houston-based oil and gas midstream company that initially would look to build a portfolio of terminals and storage projects on the Gulf Coast.
Tivoli Midstream plans to acquire, construct, manage and optimize terminals and storage logistics in what it called “superior hub locations,” noting its close proximity to refineries and chemical plants on the Gulf Coast.
Led by Rance Fromme, who has more than two decades of experience in the midstream and petrochemical industry, Tivoli management plans to oversee marine terminals, production plant logistics and handling more than 200 different chemical products, refined products, crude oil, renewable products and dry-bulk commodities.
“Despite the pandemic and volatile commodities markets, we believe there are significant opportunities to build and manage a portfolio of storage and terminal assets,” said Fromme, who previously was an executive with Dow Chemical Co. and Oiltanking. “Tivoli was formed to fill this need in the market and brings an exceptional record of safety and commitment to the industry and its customer partners.”
Joining Fromme on the senior executive team are CFO Bill Brod and Chief Commercial Officer Rick Adams.
Dallas-based Energy Spectrum said partnering with an “industry-leading management team” is a “tremendous opportunity.
“The Tivoli team is a proven operator of storage and terminal assets with a superior safety record,” said partner Mike Mayon. “We look forward to building a world-class logistics services company with Rance and his team.”This isn’t the first time during the pandemic that Energy Spectrum has dished out funding to the North American midstream sector. In May, the PE closed its eighth fund, Energy Spectrum Partners VIII, with $969 million committed to four portfolio companies. At the time, founding partner James Benson said that the firm intended to “profitably navigate the market volatility and build another strong portfolio.”
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