May 08, 2015
The current economic environment in Canada’s oil patch has provoked a range of responses from current and prospective investors. While many wait for the market to settle, interest from U.S. private equity firms looking to invest in distressed companies has risen sharply. In a Lexpert article examining investor activity in the energy sector, Torys’ Oil & Gas partner and highly experienced energy lawyer Derek Flaman discusses his experience with potential investors. Below is an excerpt of the article.
Given how keen they are to find quality assets and invest in them, private-equity firms are also actually reaching out to lawyers like me,” says Derek Flaman, an energy lawyer at Torys LLP.
“Calgary’s such a small town they realize the lawyers who do this type of work may have clients or know people – their kids may play hockey together – at a particular oil and gas company that needs investment. So they’ll actually reach out to people like us to say: ‘Hey, if you hear of anybody that’s going through some difficult times, they’re unable to get further extensions on their debt credit lines, just let us know.’”
Flaman says the frequency of calls and meetings is worth noting because it speaks volumes about the appetite US private-equity firms have for Canadian energy deals right now. “They know if they want to find good deals, the best way to do so is be on the ground as much as they can. From what I’ve seen in Calgary in the last 20 years, the level of interest right now might actually be unprecedented.”
To read the full article, click here.