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Expansion into Energy-Related Credit and Capital Markets

Expansion into Energy-Related Credit and Capital Markets

In mid-July, as part of its plans to expand into energy-related credit and capital markets, Riverstone Holdings LLC hired Christopher Abbate, Jamie Brodsky, and Daniel Flannery. All three men are highly experienced professionals in energy-focused leverage finance. Abbate, who will lead the team and serve as a Managing Director, has seventeen years of experience financing energy companies, mainly in leveraged capital markets. Abbate joins Riverstone after serving Citigroup as Managing Director and head of energy leveraged finance. Brodsky, who will also serve as a Managing Director at Riverstone, and Flannery, who will serve as Vice President, previously worked at Nomura Securities International {“Nomura”). The three men have worked together before as part of the energy-leveraged finance team of UBS Investment Bank (“UBS”) where Abbate served as head of Leverage Finance Origination. Abbate, Brodsky, and Flannery will work from Riverstone’s New York Office where they will explore opportunities for credit investment for Riverstone. The team also will advise Riverstone’s portfolio companies and select third-party clients that can optimize capital structure and access to capital markets.

Although the new team was not part of the third-party merger that took place in July, Riverstone did merge Legend Production Holdings LLC with unspecified assets from KKR Natural Resources Funds to form Trinity River Energy LLC, a new gas and oil company. David Leuschen is a co-founder of Riverstone and the Director of Legend Natural Gas, LP. KKR specified, however, that Fleur de Lis Energy LLC was not included among the assets that were part of the merger and that any future acquisitions made by Fleur de Lis will not be part of Trinity River.

Leuschen, together with fellow Riverstone co-founder Pierre F. Lapeyre, Jr., welcomed Abbate, Brodsky, and Flannery, stating that they were “very pleased” that the three men agreed to join the company. Leuschen and Lapeyre had worked with all three men at their previous firms on many previous debt-financings, and stated that they believe they have “put together a group with extensive credit structuring expertise, broad deal sourcing capabilities, strong energy industry competence and tremendous chemistry.” Leuschen and Lapeeyre expect the team to “broaden Riverstone’s focus to include investments in energy and power-related credit investments” and also to “complement the activities of our buyout professionals, helping to further maximize value in our existing and future portfolio companies.”

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