Riverstone Energy is committing $125m towards the creation of a new $375m fund, Riverstone Credit Opportunities, L.P., which has been set up to take advantage of the lack of credit available for energy companies. The fund will be advised by Riverstone’s credit investment team, led by Christopher Abbate and Jamie Brodsky, both of whom joined Riverstone in July 2014. Their experience is in leading the energy leveraged finance efforts at Citi, Nomura and UBS.
Riverstone reckon the market environment is such that they will be able to earn equity-like returns despite being higher up the corporate structure (an therefore being better protected on the downside).
RSE : Riverstone creates new credit fund