Midstream is the process of transforming natural resources into a finished product. Firms typically operate the pipeline and transmission assets that transport oil and gas from production to end markets, as well as the storage assets that provide critical inventory management and risk mitigation services. Simply put, it’s the production stage between extracting resources from the ground and delivering them to customers. Midstream can encompass everything from producing oil and gas to transporting and storing it.
The midstream sector is an integral part of the economy, growing rapidly. According to the National Association of Manufacturers, midstream investment reached $300 billion in 2018, which is expected to grow in the years ahead. There are many reasons for this growth. America’s energy renaissance is one key factor. The shale revolution has led to a production boom, driving demand for midstream services. At the same time, new technologies are making it easier to extract oil and gas from difficult formations, boosting investment in midstream infrastructure.
Midstream private equity is a type of investment in which a firm, known as a private equity firm, provides capital to a privately held company to achieve a significant return on investment. Such enterprises transport and store energy commodities such as oil and natural gas. A midstream capital growth firm typically invests in midstream companies with high-growth potential, often providing them with the necessary financial resources to expand their operations. The midstream sector is an exciting place to invest right now, thanks to the ongoing boom in North American energy production. When choosing a midstream capital growth firm, it’s essential to partner with a company with a deep understanding of the sector and a portfolio of successful investments. Houston, TX-based Trace Capital, is a leading midstream private equity firm focused on helping companies achieve their growth potential.
Why Midstream Companies Work with Private Equity Firms
The midstream sector is booming right now, given North American energy production growth. But it’s also a complex sector, with many moving parts. Trace Capital is well positioned to take advantage of the opportunities in the midstream market, and we have a proven track record of success. If you’re looking for a great investment opportunity in the energy sector, your search begins and ends here.
When it comes to investment in midstream companies, private equity firms are among the most active players. These firms provide capital to privately-held companies to achieve a significant return on investment. One of the primary reasons that companies work with midstream private equity Houston firms is because these firms can provide them with the necessary financial resources to develop their operations. In addition, private equity firms can bring tremendous expertise to the table and help midstream companies improve their operational efficiency and grow their businesses.
The firm’s investment strategy is built on three pillars:
- A focus on North America: Trace Capital has a deep understanding of the North American energy markets, which provides a distinct advantage when investing in midstream companies.
- Growth-focused: Trace Capital invests in companies that have high-growth potential. This allows them to generate significant returns for their investors.
- Value-focused: Trace Capital seeks opportunities to create value for its investors through active management and operational improvements.
These three pillars have helped Trace Capital to achieve a track record of success, and they are well positioned to continue this success in the future. Based in Houston, TX, Trace currently manages funds with invested and committed capital of over $1.4 billion.
At Trace, we focus on transparency, partnership, risk management, and operational competence throughout market cycles. We provide energy entrepreneurs and growing businesses with the capital and broad support necessary to deliver tangible energy returns.
Contact Trace Capital To Learn More
The midstream sector is poised for continued growth in the years ahead. Midstream private equity firms like Trace Capital will be essential players in that growth. If you’re looking for a midstream private equity firm that can provide capital for growth and value, Trace Capital is an excellent choice. Contact us today to learn more about our midstream private equity Houston investment strategy and how we can help you achieve your goals.
700 Louisiana St, Ste 3700
Houston, TX 77002
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