MEXICO CITY & NEW YORK--(BUSINESS WIRE)--
a leading global investment firm, today announced a new joint venture
Energy ("Monterra") to pursue investments in the midstream energy
sector in Mexico. Under the agreement, KKR is making an equity
commitment to Monterra for the development of new projects and
acquisition of midstream assets and businesses. Financial terms and
details of the partnership were not disclosed.
Monterra was founded in 2014 by Arturo Vivar and Michael A. Williams to
pursue select investment opportunities in the midstream sector in
Mexico. With offices in Houston, Texas and Mexico City, Monterra has a
proven management team and highly experienced, local advisory board
members with success across North and South America in the areas of
upstream, midstream and oilfield services.
"Monterra is excited to partner with KKR," said Arturo Vivar, CEO of
Monterra. "Together with KKR and its investment expertise, Monterra will
provide a differentiated set of capabilities that can be applied to the
development and operation of strategic midstream projects and assets in
Tudor, Pickering, Holt and Co. estimates that Mexico should attract
approximately $50 billion and $13 billion in capital expenditures
spending for pipeline infrastructure and power generation, respectively,
over the next five years.
Monterra intends to own, develop, build and operate midstream
infrastructure in Mexico through both new (greenfield) and existing
(brownfield) projects and assets. Primary areas of focus include
terminaling and storage infrastructure for refined products, crude oil
and natural gas liquids (NGLs) as well as pipeline and rail logistics
assets to transport and handle refined products, crude oil and NGLs.
Other areas of interest may include natural gas transportation and
storage and power generation.
Commenting on the partnership, Marc
Lipschultz, Global Head of KKR's Energy and Infrastructure business,
said: "This partnership is about backing a strong team with decades of
experience in the energy sector and in Latin America to deliver superior
solutions to Mexico's growing energy sector. We look forward to working
with the Monterra team."
Fergie, KKR's Head of Brazil and Latin America, added: "We are very
optimistic when it comes to the macroeconomic landscape in Mexico, and
we continue to believe the country has significant opportunities - in
energy and beyond - for long term investment."
KKR has a depth of experience investing in energy and in businesses that
operate in Mexico. KKR's contributions to the joint venture will be
funded primarily from KKR's North America XI Fund. KKR's Global Energy &
Infrastructure business invests across the entire energy supply chain
and the firm manages approximately $10 billion in energy and
infrastructure related assets. The Firm also has a global private equity
portfolio that includes multiple companies that together employ over
10,000 employees in Mexico, including Aceco TI, Capsugel, First Data,
Laureate Education, Lake Region Medical, Nielsen, and PRA Health
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world‐class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com.
Huller, + 1 212-230-9722
Elisenda Casellas, +52 55 5257 1084 (ext. 9192)
Arturo Vivar, 713-305-6029
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