PE Exits Reveal a 2010 Boost in Energy

A group including Energy Special Situations Funds has sold Amega West Services to Carpenter Technology (NYSE: CRS) for about $54 million. Amega manufactures components for directional drilling equipment. ESSF acquired a 50% stake in the company for $15 million in January 2008.

Since the beginning of 2008, PE investors have exited 73 companies primarily engaged in the Energy Industry, according to the PitchBook Platform. 2010 closed up with 33 completed exits, more than tripling 2009's total of 10 and even creeping by 2008's 29. Last year also witnessed a jump in the median size of exit deals to $359.5 million, after the number held steady during the two preceding years, barely moving from $255.98 million to $253.34 million. Throughout the three years, sales to corporations was consistently the exit method of choice for PE investors, accounting for 82.8% of 2008's exits, 60% of 2009's and 72.7% of 2010's. Meanwhile, 178 PE investors made new Energy investments. The most active included Riverstone Holdings (20 deals), Kayne Anderson Capital Advisors (19), Encap Investments (13), Energy Capital Partners (13), Metalmark Capital (11) and Quantum Energy Partners (11).