Sample Portfolio Companies
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NORTH BASIN COATING
North Basin Coating applies corrosion‐resistant fusion bonded epoxy and powder coatings on the internal and external surfaces of pipe, pumps, valves, fittings, vessels and other steel components used in critical oil and gas and water/wastewater functions. With a 35 year operating history and two state of the art coating facilities comprising over 100,000 square feet, NBC is the leading custom pipe coating company in the Permian Basin.
Venquest led the acquisition of North Basin Coating in May 2016. NBC was majority owned by the founders who had retired from the daily operations and desired to sell the company. The principals of Venquest provided a significant portion of the equity capital and arranged the balance of the debt and equity from third parties to successfully close the acquisition during a difficult downturn in oil and gas industry.
Following the acquisition, Venquest functioned as interim CFO for a year, restructured the management team and significantly enhanced processes, sytems, financial reporting and company procedures. Venquest is actively pursuing growth opportunities for NBC both through acquisition and greenfield facilities construction. |
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Alsay Incorporated
Alsay drills and services large diameter water wells for municipal water systems, privately operated municipal utility districts and a variety of large industrial clients. Alsay constructs highly engineered and specialized wells costing up to $2 million each, and also provides extensive maintenance services on a large base of installed wells. With a 40 year history, two facilities located in Houston and San Antonio, and the largest fleet of drilling and service rigs suitable for constructing these large wells in Texas, Alsay is the dominant municipal water well contractor in the region.
Venquest originally led the acquisition of Alsay in 2003. The business performed well through the next five years and our equity investors desired to exit the company in 2008, consistent with their five year investment horizon. When prospective buyers encountered difficulty closing the acquisition due to difficult market conditions, Venquest recapitalized the business in early 2009 and acquired the equity interests from our original shareholders who received a cash-on-cash return of 3.8x and an IRR of 38%.
Venquest has continually worked to expand Alsay’s service offering and footprint. In 2012, Alsay opened a wastewater service division to complement its freshwater well drilling and service business. In January 2014, Venquest led the add-on acquisition of Mid-South Water, one of the leading groundwater supply companies in the mid-South area, serving municipal and industrial customers and farmers large and small throughout Mississippi, Louisiana, Arkansas and Tennessee. Shortly after the acquisition of Mid-South, Alsay opened a new district office in Opelousas, Louisiana to better serve the Louisiana market. |
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Frac Tank Rentals, LLC
Frac Tank Rentals is the leading independent frac tank rental company operating in the Permian Basin area of West Texas. The Company was formed in 1976 and has grown consistently by steadily adding tanks to its rental fleet while developing a strong reputation for quality and timely service. Frac tanks are predominantly used to hold fluids in the hydraulic fracturing process for completing newly drilled oil and gas wells and reworking existing wells. FTR handles all of the logistics involving delivery, pick-up, cleaning and movement of its tanks between jobs using the Company’s fleet of twenty-seven winch trucks and six locations.
Venquest led the acquisition of FTR in January 2012 from the original founder, with the second generation of the family continuing to run the company and own an equity interest. At the time of acquisition, FTR had 700 tanks, two locations and a dominant position on the Texas side of the Permian Basin. In December 2012, Venquest led the add-on acquisition of Two State Oilfield which owned 422 tanks, three locations, and held a dominant market share on the New Mexico side of the Permian Basin. In addition to the Two State acquisition, FTR has grown organically by continually acquiring tanks and opening new locations. |
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Precept Medical Products
Precept is a disposable medical products manufacturing company offering solutions to a variety of patient, staff and enviromental problems that plague the healthcare industry. Precept manufactures a complete line of protective apparel consisting of face masks, protective gowns, scrubs, headwear, shoecovers, warm-up jackets, labcoats, coveralls and surgical drapes and gowns.
The Principals of Venquest helped lead and invested in the acquisition of Precept in 1999 through a partnership with various individuals including a former Banc One colleague, the former CFO of Precept, and outside investors. This ownership group’s familiarity with the company positioned it well to acquire the company from the strategic owner which had neglected the company over a period of time. Very shortly post-closing, Precept returned to profitability as projected. |
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Petroplex Acidizing, LP
Exited through sale November 2012
Petroplex is a 25 year oilfield services business that provides well stimulation treatments to leading oil producers in the Permian Basin region of West Texas and Eastern New Mexico. Petroplex custom fabricates its own specialized equipment so that it can efficiently and safely perform acid stimulation services. This extensively used service dramatically improves the productivity of an existing oil well, but is a somewhat small niche that is neglected by most major service companies. With the largest fleet of equipment specially designed to do these small acid treatments in the region, and facilities in Midland, TX and Lovington, NM, Petroplex is the leading provider of small volume stimulation treatments in the Permian Basin.
Venquest has extensive experience in oilfield services, and began looking for a company to acquire in this industry in 2005. Petroplex was majority owned by the original founder who was planning his eventual retirement, but had groomed his son-in-law into the President role and previously sold a portion of the ownership to him. Venquest led the acquisition whereby it acquired the majority of the stock, the President retained a meaningful minority position, and the former owner agreed to consult for a period of time. Venquest worked extensively with management and served as CFO during the entire five year investment period. During that time, EBITDA tripled and Petroplex was ultimately sold in December 2012, resulting in a 50% IRR and cash-on-cash return of 6.2x for our investors.
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