Crestwood Midstream Swells with New Investors
Blackstone, subsidiary, joins Kanye Anderson investors to take ownership stake in energy firm.
June 25, 2008
Crestwood Midstream Partners, a privately held Texan midstream pipeline company, got a $500 million equity commitment from The Blackstone Group and Kayne Anderson Energy Funds, it was announced Wednesday.
Blackstone and GSO Capital Partners, a recently-acquired unit of the listed buyout firm, joined with Kanye Anderson and Crestwood Management LLC to direct funding to the recently-founded energy unit with which it will make asset and business buys in North America.
“We have been closely following the developments in the midstream sector and believe the Crestwood management team possesses a deep understanding of the sector and has the credibility and relationships to build a world-class midstream business and deliver attractive returns to our investors,” said David Foley, senior managing director of Blackstone. “Blackstone has successfully backed management teams in startup ventures in other segments of the energy sector such as Sithe Global Power (power plant development) and Kosmos Energy (oil exploration).”
GSO Capital Partners was acquired by Blackstone in March of this year; Kanye Anderson Energy Funds, a private fund, is an offshoot of Kanye Anderson Capital Advisors.
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