Ares EIF will Combine Paradigm Assets with its Van Hook Gathering
System, Expanding Bakken Formation Footprint
LOS ANGELES--(BUSINESS WIRE)--
Ares Management, L.P. (NYSE:ARES) announced today that funds managed by
Ares EIF, its power and infrastructure strategy, have closed on the
acquisition of substantially all of the assets and business interests of
Paradigm Energy Partners from an affiliate of Stonepeak Infrastructure
Partners. The Paradigm assets will be combined with Ares EIF’s adjacent
Van Hook Gathering System, which it acquired in 2015, to form a premier
regional midstream platform serving the core of the Williston Basin in
North Dakota, with additional reach into the prolific Eagle Ford Shale
in South Texas. The combined entity, which will continue to be known as
Paradigm, will continue to be operated by Paradigm’s existing management
team and employee base.
The acquisition consists of two oil and natural gas gathering systems in
North Dakota and a third in South Texas, along with joint venture
interests in the Sacagawea Pipeline Company and various logistics assets
in North Dakota. By year end 2018, the combined company is expected to
transport nearly 50,000 barrels of oil and 23 million cubic feet of gas
per day from 11 contracted customers in North Dakota and Texas.
“We believe that this transaction with Paradigm aligns with our
investment strategy as it expands our reach in the core of the Williston
Basin and continues Ares EIF’s 30-year track record of investing in
high-quality companies and assets in the U.S. energy infrastructure
space,” said Keith Derman, Partner with Ares EIF.
“The Paradigm management team has done a tremendous job over the past
four years developing and building a basin-changing midstream platform,”
said Scott Parkes, Principal with Ares EIF. “We are delighted to have
this opportunity to support this team as they transition from initial
build-out to long-term growth.”
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative
asset manager with approximately $121.4 billion of assets under
management as of June 30, 2018 and 18 offices in the United States,
Europe, Asia and Australia. Since its inception in 1997, Ares has
adhered to a disciplined investment philosophy that focuses on
delivering strong risk-adjusted investment returns throughout market
cycles. Ares believes each of its three distinct but complementary
investment groups in Credit, Private Equity and Real Estate is a market
leader based on assets under management and investment performance. Ares
was built upon the fundamental principle that each group benefits from
being part of the greater whole. For more information, visit www.aresmgmt.com.
Ares EIF is the power and infrastructure strategy within Ares’ Private
Equity Group, with a 31-year track record of investing in assets and
companies in the power generation, transmission and midstream sectors.
Since inception, Ares EIF-managed funds have made approximately 70
equity investments in nearly 130 different power and energy
infrastructure assets with a combined underlying enterprise value
exceeding $20 billion. During the last 15 years, Ares EIF has invested
in nearly 9,000 megawatts of greenfield generation and transmission
projects, as well as over 200 miles of greenfield pipeline projects,
representing over $11 billion of capital costs.
Forward-Looking Statements
Statements included herein may constitute “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of
1995, which relate to future events or our future performance or
financial condition. These statements are not guarantees of future
performance, condition or results and involve a number of risks and
uncertainties. Actual results may differ materially from those in the
forward-looking statements as a result of a number of factors, including
those described from time to time in our filings with the Securities and
Exchange Commission. Ares Management, L.P. undertakes no duty to update
any forward-looking statements made herein or on the webcast/conference
call.
Nothing in this press release constitutes an offer to sell or
solicitation of an offer to buy any securities of Ares or an investment
fund managed by Ares or its affiliates.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180906005274/en/
Media:
Mendel Communications
Bill Mendel, 212-397-1030
[email protected]
or
Investors:
Ares
Management, L.P.
Carl Drake, 800-340-6597
[email protected]
or
Priscila
Roney, 212-808-1185
[email protected]
Source: Ares Management, L.P.
