Private Equity Funds
Simmons Parallel Energy Fund
The Simmons Parallel Energy Fund is a private equity co-investment fund managed by Parallel General Partner Limited, based in Guernsey, a wholly-owned subsidiary of Piper Jaffray Limited, Simmons & Company International. Simmons & Company International provides portfolio advisory services. The Fund invested, alongside other investors, in European-headquartered energy businesses and targeted three main energy sectors:
- Oilfield services and technology
- Development and opportunities without exploration
- Technologies that enable alternative energy
The fund commitments were approximately €50 million, and first close occurred in April 2008. The fund is now closed for new investments but has committed capital available to support its portfolio companies.
Current Portfolio Companies
Glacier is focused on providing specialist services for energy infrastructure internationally. The group consists of the specialist services division, which includes niche services in heat exchangers (design, manufacture and refurbishment), on-site machining services and products, non-destructive testing (“NDT”) and weld cladding overlay welding services.
The initial acquisition was made in March 2011 with four follow-on acquisitions made since then to expand Glacier’s offering.
HCS specialises in the design, manufacture, assembly and testing of equipment for subsea production and intervention. HCS’s systems include direct hydraulic production systems, installation and workover (IWOCS) systems, subsea distribution units, and the complete range of topsides equipment for deployment and handling of umbilical systems. Complementing its product offering, HCS offers a range of services from equipment rental of hydraulic testing and flushing units to manpower and welding services. The company is based in Glenrothes, Scotland. The investment in HCS was made in June 2013.
Exited Portfolio Companies
Flexlife is an established provider of engineering, design, delivery and integrity services in the specialist areas of flexible pipe and umbilical assets. From its operations in Aberdeen and Houston, Flexlife supports customers to ensure compliance, optimise production, reduce costs and extend the life span of assets. The investment in Flexlife was made in October 2010 and the fund exited to Seanamic
Group in 2017.
EFC Group designs, manufactures and installs instrumentation and drilling controls, choke controls, managed pressure drilling systems and mechanical handling equipment for the global oil and gas industry. The investment in EFC was made in December 2009 and the fund exited to a consortium of investors in December 2014.
Xodus offers engineering and advisory support for oil and gas upstream operators and renewable energy developers globally. The investment in Xodus was made in March 2011 and the company was sold to Chiyoda Corporation in July 2013.
RST is a downhole technology company that provides tools and engineers to the well intervention and competitions market. The investment in RST was made in March 2010 and the fund exited to Halliburton in December 2012.
Subocean Group Limited
Subocean was a provider of subsea cable installation to the offshore renewable energy industry. The investment in Subocean was made in December 2009 and the fund exited to Technip in January 2011.
Simmons Private Equity II
Simmons Private Equity II (SPE II) is the successor fund to Simmons Parallel Energy. It has been set up to invest in small– to medium–sized companies who predominantly operate in the oil and gas services industry. The SPE II strategy is to provide capital to support a "buy and build" strategy, creating groups with a differentiated and simplified offering to its customers. SPE II will lead investments but will typically seek a co-investment partner and/or significant management participation. It is also managed by Parallel General Partner Limited with Simmons & Company International®, Energy Specialists of Piper Jaffray® providing portfolio advisory services. The fund size is £127 million.
Current Portfolio Companies
Safehouse specialises in the rental and sale of ATEX-certified hot work enclosures for use in potentially explosive (Zones 1 & 2) atmospheres enabling operators to perform maintenance adjacent to live operations and minimising shutdown periods. The Safehouse system offers 2 key properties: (i) Containment – ensuring that grinding sparks and/or welding slag have no possibility to escape from the enclosure and (ii) Pressurisation – overpressure that acts as a barrier to prevent the ingress of gaseous hydrocarbons. The investment in Safehouse was made in January 2014.
Sabre Safety primarily provides hydrogen sulphide (H2S) services to the oil and gas industry as well as supporting breathing air systems for decommissioning work and shutdown operations. It also provides fire suppression systems and consultants. It was established in 2001 and has a strong reputation in the North Sea and international markets for enabling safe operation of assets.
GA is a Dundee based high-quality precision manufacturing business which serves the oil and gas industry with a small element of diversification into the automotive, aerospace, electronics and medical industries. GA has been in business for over 20 years and has built a longstanding customer base of oil and gas service companies, including the major equipment manufacturers. The investment in GA was made in November 2014.
The MKW Group consists of three complementary engineering businesses serving the oil and gas, industrial and defense markets, operating from a base near Newcastle. The MKW Group has a solid reputation with several longstanding customer relationships and has developed a "one-stop-shop" in the provision of a wide range of integrated subcontract engineering services. The investment in MKW was made in September 2015. MKW enhances GA’s offering to offer a turnkey manufacturing solution to its customers.
SengS is an Ellon-based engineering company providing subsea engineering design consultancy, equipment testing and assembly, repair and refurbishment and rental of certain subsea equipment. It was the third acquisition for the platform, completed in November 2016, and accelerates the strategy of building an integrated contract manufacturing solutions provider as well as providing differentiation and simplification to a diversified customer base.
Based in Glasgow, Caley engineers, designs, assembles and commissions bespoke marine handling systems for the offshore industry. Its main product lines are carousels, vessel handling systems, tensioners and davits. Operating since 1967, Caley's success and reputation is due to its significant engineering know-how and extensive track record that enables it to develop solutions to meet customer challenges. The investment in Caley was completed in September 2014.
Based in Houston, Texas, UI manufactures specialist application cables, marine umbilicals and connection systems, primarily focused on the upstream oil and gas industry. The company operates through two main divisions; umbilicals international and geocables. The investment was completed in March 2015.
The investment expands the Seanamic's presence in international markets and extends the customer base with the potential to bundle the combined product offering.
IMES is an inspection and monitoring engineering solutions company. It provides bespoke monitoring and load measurement systems, as well as inspection, test, repair and maintenance service expertise for cranes, lifting gear and other specialised handling structures. IMES has a long heritage and strong reputation for service/product quality.
The company is headquartered in Aberdeen with additional offices in Plymouth, Portsmouth, Rosyth and Sheffield.
Flexlife specialises in the engineering, inspection and repair of flexible pipe and umbilical assets for the subsea sector of the oil and gas industry. Flexlife owns patented technology which enables the provision of a number of innovative products and services on the market in the field of asset integrity management.
The Global Upstream Consultancy Group
SPE aims to build a global upstream consulting group. The strategy is to create a portfolio of niche providers, profitable in their own right, which when combined, will drive operator efficiency, safety and productivity.
Established in 2008, LEAP Energy is an international subsurface and technology consultancy that delivers services through its operational offices in Malaysia, Australia and Europe, with representative offices in India, Indonesia and the Middle East. Besides the core activities of reservoir studies and M&A advisory, LEAP Energy is a recognised technology innovator in mature field production optimisation and delivers predictive analytics for conventional and unconventional reservoirs.
Based in Aberdeen, Step Change Engineering specialises in the provision of design, engineering and project management services in relation to brownfield projects and the repair and modification of topside oil and gas facilities in the UKCS. Step Change is recognised in the industry for its streamlined approach towards service delivery, differentiating itself from competitors with the speed and cost at which it can provide key deliverables.
The investment represents a key acquisition, enhancing the group’s geographical presence through establishing itself in the North Sea, where the business has secured major contact wins marking a move to tier 2 contractors in the basin.