Tailwater Capital

Tailwater Capital is a prominent Dallas-based private equity firm with a specialized focus on the middle-market energy and growth infrastructure sectors. Established as a spin-out from HM Capital Partners, the firm has grown significantly, demonstrating a robust capacity for capital deployment. Tailwater Capital manages over $4.1 billion in committed capital, positioning it as a substantial player within its niche.

The firm's investment strategy centers on making majority equity investments in established companies that possess strong management teams and clear growth trajectories. Tailwater targets a diverse range of sub-sectors, including midstream, upstream, oilfield services, and emerging energy transition opportunities. They are known for their hands-on, operationally-focused approach, aiming to create value through strategic partnerships, operational enhancements, and disciplined capital allocation within their portfolio companies.

Tailwater Capital typically targets equity investments ranging from $50 million to $300 million per transaction, reflecting their focus on substantial, impactful deals within the middle market. Their ability to consistently raise significant capital underscores investor confidence; for instance, Tailwater Energy Fund V, L.P. closed with $1.5 billion in commitments in 2023. This financial strength and strategic focus enable the firm to support the growth and transformation of energy and infrastructure businesses, driving long-term value creation.