HOUSTON –(BUSINESS WIRE)– GEC, an energy technology focused growth private equity firm based in Houston, Texas, is pleased to announce the completion of a $215 million single-asset continuation fund transaction involving one of its portfolio companies, Estis. The over-subscribed transaction is capitalized by a consortium of new institutional investors and provides liquidity to long-standing investors in Estis. The new investors subscribed through a vehicle managed and controlled by GEC. Kline Hill Partners was the sole lead secondaries buyer in the transaction.
Estis is the pioneer and market leader of High Pressure Gas Lift (“HPGL”), a disruptive artificial lift technology. Since GEC’s acquisition of Estis in 2019, the company has grown EBITDA by 5x driven by exponential adoption of its HPGL technology. Estis generates industry-leading artificial lift EBITDA margins, returns and free cash flow. The company is headquartered in Kilgore, Texas with 273 employees.
“We are extremely proud of Estis’ success thus far, and the attractive returns we have generated for existing investors. We believe there is significant imbedded value in Estis going forward. GEC was thrilled with the guidance provided by Abhi Mitra and his team at UBS, who led this transaction. We are excited to be partnering with an exceptional group of new and like-minded investors in Estis,” said GEC’s Managing Partner, Jonathan Fairbanks.
“We are pleased to bring this transaction successfully to fruition, and enjoyed our partnership with GEC,” said David Swanson, a Managing Director at Kline Hill Partners. “This transaction reflects new investors’ conviction surrounding the continued growth potential of high-quality assets such as Estis, which operate in sectors enjoying strong secular tailwinds.”
UBS’ GP Capital Advisory team served as financial advisor, and Proskauer Rose LLP served as legal advisor to GEC.
GEC invests in innovative energy technology and software companies driving transformation to meet the rising demand for cleaner energy. Since its founding in 2008, GEC has completed 21 platform investments and add-ons, and created over $1 billion of equity value for its investors. For more information, please visit www.geclp.com
About Kline Hill Partners
Founded in 2015, Kline Hill Partners is an investment firm focused on the private equity secondary market, with industry-leading capabilities in the small-deal space. With over $3 billion in assets under management, Kline Hill’s funds are backed by a blue-chip investor base that includes endowments, foundations, family offices, and other institutional investors. Kline Hill’s platform is designed to serve the entirety of the small-deal secondary market, with capabilities spanning LP fund transfers, GP-led transactions, and secondary direct transactions focused on private equity, venture capital, growth equity, and other private investment strategies. For more information, please visit www.klinehill.com
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