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Natural Gas Partners Announces First Close of NGP Energy Technology Partners, L.P.

Posted on: Friday, 9 September 2005, 15:00 CDT

Natural Gas Partners and Philip J. Deutch announced today the initial closing of NGP Energy Technology Partners, L.P., with initial commitments of $94.1 million. The private equity fund will provide growth capital and buyout funding for companies that develop energy technologies or that provide technology-driven products and services to the energy industry. The fund is uniquely designed to invest in companies serving the entire energy industry, including the oil and gas, electric power, and alternative energy sectors.

"We are pleased with the response to our most recent NGP-sponsored fund, which earned commitments from a mix of current and new NGP investors," said Ken Hersh, Managing Partner of Natural Gas Partners. "The fund is a logical extension of NGP's franchise as the leading provider of capital for the energy industry. It is clear that the energy industry is in an era where the development and application of technical innovation is growing in importance in the oil and gas, power and alternative energy sectors. NGP ETP is positioned to generate a great investment opportunity with attractive risk/reward characteristics for investors interested in the sector. Moreover, NGP is especially pleased to be teaming up with someone of Phil Deutch's caliber to capture these opportunities. He is one of the most experienced and successful investors in this sector, having specialized in this area since 1997."

Following today's initial closing, the fund will remain open to receive additional commitments, accommodating a number of investors that have indicated they will subscribe to the fund as soon as they complete their internal review and approval processes. Institutions that wish to learn more about the opportunity to invest in the fund may contact John Foster of Natural Gas Partners at (203) 629-2440.

Mr. Deutch will be the Managing Partner of NGP ETP with overall responsibility for sourcing, structuring, executing and monitoring the fund's investments. He currently serves on the Board of Directors of Evergreen Solar Inc. (NASDAQ-ESLR). Previously, Mr. Deutch has served on, or has been an Observor to, the Board of Directors of Beacon Power Corp. (NASDAQ-BCON), Northern Power Systems and Proton Energy as a result of investments he led as a Managing Director of Perseus, L.L.C., his former employer. Mr. Deutch holds a Juris Doctor degree from Stanford University and a Bachelor of Arts from Amherst College.

"NGP Energy Technology Partners is a great opportunity for me to team up with a large, well-respected and influential partner to pursue investments where I think our combined strengths create a competitive advantage. My background in energy technology investing combined with NGP's experience and knowledge should be a powerful combination," said Mr. Deutch. "There are a number of significant issues in the energy industry today, such as higher finding and operating costs for the oil and gas industry, concerns about the electricity grid and power quality and reliability, and the cost reductions needed by alternative energy sources, that provide tremendous investment opportunities for those with discipline and experience."

Founded in 1988, Natural Gas Partners is the leading investment platform in the energy business, with total capital under management in excess of $2.0 billion. In addition to NGP Energy Technology Partners, L.P. the platform includes Natural Gas Partners, a $1.6 billion family of private equity funds dedicated to the North American energy industry and NGP Capital Resources Company (NASDAQ: "NGPC") a $261 million publicly-traded business development company that focuses on providing debt capital and structured project equity for energy companies. NGP also manages the $100 million NGPVII Income Co-Investment Fund, L.P. a vehicle that owns direct interests in oil and gas properties alongside existing NGP portfolio companies.

To date, NGP has invested over $1.4 billion in over 80 private energy companies located throughout North America. In addition, the firm has been the catalyst for some of the larger recapitalizations and merger transactions in the independent oil and gas sectors. In total, NGP has been a leader in structuring and negotiating transactions totaling over $10 billion.

Source: Business Wire

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