Goldman’s Energy Rich Riverside Dealings

Recently, Goldman Sachs has picked up a big piece of an energy investment firm by the name of Riverside Holdings. In this article written by Anthony Noto, a reporter for the New York Business Journal, it is said that Goldman Sachs is prepared to pay half a billion dollars to acquire a 12 percent stake in the energy investment firm, which is valued at more than $4 billion.

With both Riverstone and Goldman Sachs based in New York, the deal is said to reunite the old Goldman energy team with Riverstone’s founders. Before they founded Riverstone, David Leuschen and Pierre Lapeyre Jr. were advising energy investment deals for the New York based investment company.

Since Leuschen and Lapeyre left to start Riverside, their company has raised around $36 billion from wealthy families, pensions, and endowments. By keeping close ties with Goldman Sachs, the investment duo uses Goldman’s resources to find better investment opportunities as well as find prospective members for their company. In fact, Riverstone’s investment committee is comprised of 14 former Goldman Sachs employees.

One such member is Mark Papa, who was formerly the CEO of EOG Resources Inc. based in Houston, and who worked with Riverstone while at Goldman Sachs. He was also previously the CEO and chairman of Silver Run Acquisition Corp, a blank check company founded by Papa and Riverstone in November 2015, before it merged with Centennial Resource Development last year. Now, he is the CEO and Chairman of Centennial Resource Development.

Riverstone has also been involved with other substantial business deals. Silver Run Acquisition Corp. II, another Riverstone affiliate sponsored blank-check company led by Riverstone partner James Hackett, raised around $1 billion earlier this year. In addition, Riverstone is set to sell Rock Oil Holdings LLC, based out of Denver and Houston, to SM Energy Co., a Denver based company, for $980 million.

Goldman Sachs meanwhile has its eye on the oil and gas sector. The financial powerhouse has said that it has seen potentials for growth between the oil and petroleum industry giants such as Marathon Petroleum Corp. in Ohio, Valero Energy Corp. in San Antonio, and Husky Energy Inc. based in Canada.