EIG Global Energy Partners (also known as EIG and EIG Partners) is an American investment firm headquartered in Washington, D.C. It focuses on investments in the energy sector. The firm has additional offices in Hong Kong, Houston, London, Rio de Janeiro, Seoul and Sydney.
In 2023, the firm was ranked by Infrastructure Investor (under Private Equity International) as the fifth largest infrastructure debt investment firm based on total fundraising over the most recent five-year period.
Background
In 1982, the TCW Group (TCW) established its Energy & Infrastructure Group in Los Angeles. The purpose of it was to invest solely in companies or projects in energy-related infrastructure.This was by providing mezzanine debt and private equity to energy projects and companies mainly in OCED countries. It would also target one-off negotiated private transactions with small- and mid-cap energy companies.
In 2007, the Energy & Infrastructure Group founded TCW Energy Partners, a feeder fund that invests in EIG-managed funds and projects and only accepts investments from institutional investors. It was listed on GSTrUE, a private exchange managed by Goldman Sachs. Barry Cheung was a director of the fund.
In January 2011, TCW Energy & Infrastructure Group was spun off as an independent firm and was renamed to EIG Global Energy Partners. The stated reasons for the split was the energy team wanted to "own the upside" of their business and free themselves from regulatory red tape. EIG moved its headquarters from Los Angeles to Washington, D.C.
In June 2011, TCW Energy Partners was renamed to Gateway Energy & Resource (Gateway).
In February 2012, China Investment Corporation acquired an undisclosed minority stake in EIG.
In March 2012, EIG planned to list Gateway on the Hong Kong Stock Exchange to raise US$200 million and allow a larger range of investors to get exposure to EIG's investments. However it withdrew due to poor market conditions. In September 2012, another attempt to list was done In December 2012, China Development Bank and Gateway signed a letter of intent where Gateway would be acquired by the listing platform, China Development Bank International Investment which would allow Gateway to list on the Hong Kong Stock Exchange via backdoor listing . However, on August 7, 2013, the deal was terminated.
In March 2014, Affiliated Managers Group acquired an undisclosed minority stake in EIG.
Notable deals
In April 2021, a consortium led by EIG signed a deal to acquire a 49% equity stake in the oil pipelines business of Saudi Aramco for $12.4 billion.
In March 2023, EIG and Brookfield Corporation acquired Origin Energy for $10.2 billion. Origin Energy would be broken up with EIG taking the liquefied natural gas unit.
Legal actions
The Carlyle Group acquisition of TCW
In August 2012, EIG filed a lawsuit to prevent a deal where The Carlyle Group would acquire its former parent, TCW. EIG alleged the deal violated certain contractual rights granted to EIG as part of its separation from TCW. It resolved around a joint venture between EIG and TCW that was put in place at the time of the spin off to act as a central clearing house for sharing some of the economics of EIG's funds with TCW. The deal would put EIG's proprietary information into the hands of Carlyle which EIG deemed a direct competitor. However sources stated the EIG's real purpose behind the lawsuit was to server all ties with TCW by using the company's ability to block the acquisition as leverage.
In January 2013, EIG came to an agreement with the parties and dropped its lawsuit opposing the deal. As part of the agreement, EIG would no longer make payments to TCW on new funds it introduces in the future, As a result, Carlyle acquired TCW from Société Générale in February 2013.
Intervention Energy Holdings
Intervention Energy Holdings (Intervention) had received $200 million in senior secured notes from EIG in 2012, which it used to finance well development costs. However, in the fall of 2015, Intervention defaulted on its debt and at the time still owed EIG $140 million.
On May 20, 2016, Intervention Energy Holdings filed for Chapter 11 bankruptcy and EIG filed a lawsuit to stop the process stating that according an agreement, Intervention could not file for bankruptcy protection without 100% of shareholder votes. As EIG did not vote to support it, Intervention was in breach of contract.
However, on June 6, 2016, the court sided with Intervention and denied EIG's bid to stop the process. Intervention at the time agreed to a deadline to receive a new loan or equity commitment to pay back EIG by November 15.