Energy Mezzanine Opportunities Group
IPAA Private Capital Conference Rahul Culas Co-Head Energy Mezzanine Opportunities February 24, 2011
Overview of The Carlyle Group
Established in Washington, D.C. in 1987 One of the worlds largest global alternative asset management firms today: $97.7 billion in capital committed to 78 private equity and debt funds
917 employees in 27 offices around the world
Europe: Offices: 9 Funds: North America: Offices: 4 Funds: Buyouts Growth Capital Energy & Power Real Estate Structured Credit Mezzanine Distressed Situations Energy Mezzanine Infrastructure Middle East/North Africa: Offices: 4 South America: Office: 1 Fund: Buyouts Fund: Buyouts Buyouts Growth Capital Real Estate Structured Credit Mezzanine Distressed Situations Asia: Offices: 9 Funds: Buyouts Growth Capital Real Estate
More than 1,300 investors located in 73 countries
Note: As of September 30, 2010, unless otherwise noted.
Team Overview1
Investment Committee Senior Advisors
Bill Conway
Co-founder of The Carlyle Group
Mitch Petrick2
Head of Global Credit Alternatives
Former Global Head of Institutional Sales and Trading at Morgan Stanley
Ron Harrell
Former Chairman & CEO of Ryder Scott
Bobby Shackouls
Former Chairman & CEO of Burlington Resources Inc
David Albert
Co-Head of CEMOF
Rahul Culas
Co-Head of CEMOF
Senior Advisor 3
Investment Team
Senior Advisor 4
David Albert
Managing Director Portfolio Manager Co-Head of CEMOF
Former Global Head of Project & Structured Finance at Morgan Stanley
Rahul Culas
Principal Co-Head of CEMOF
Former Head of Power Finance at Morgan Stanley
David Gibson
Vice President Petroleum Engineer
Former SVP at Central Resources
Daniel East
Vice President
Former SVP at KGen Power and Senior Director at Dynegy
Investment Professional 7
Julie Kim
Associate
Notes: 1. As of February 21, 2011. 2. Chairman of the Investment Committee.
Sun-Young Chung
Associate
Former Analyst in Mergers & Acquisitions at Citi
Former Analyst in Project & Structured Finance at Morgan Stanley
Investment Professional 8
3
Energy Mezzanine Opportunities Group Overview
We invest in projects and companies across the energy value chain, primarily in the US and Canada Upstream oil and gas Power generation (commercially proven technologies) Energy-related infrastructure and processing assets Mining and related natural resource assets
Provider of capital for acquisitions, refinancings, and development and growth Investment process emphasizes flexible deal structures, rapid turnarounds, and straightforward negotiations Team headed by former Morgan Stanley Project & Structured Finance professionals who have spent their careers focused on investing in, and financing, energy projects Full time reservoir engineer on staff
Investment Profile
Sector Focus Geographic Focus Investment Size Investment Tenor Return
Upstream, midstream, downstream US and Canada Target $25 million to $100 million 2 6 years Combination of current cash pay, PIK and equity kickers (e.g. warrants)
We structure creative & flexible capital solutions tailored for specific company needs
Benefits & Advantages of Carlyle as a Financial Partner
Cost & Control Cheaper than private equity Allows management to retain full control Management friendly capital not loan-to-own approach
Flexible & Efficient Capital
Can close quickly Structurally flexible Streamlined credit and investment approval process
Solution Provider
Healthy risk appetite for more challenging capital requirements Extensive relationships with banks and hedge counterparties Houston presence Full-time reservoir engineer on staff
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What We Look For
Management Strong operating capabilities Proven track record Industry expertise Assets Focus on quality project, not long track record alone Leverage specific to assets / production
Risk Reserves development and engineering play - Not pure exploration risk - Not price play
Financial Strong cash flow that withstands downside scenario Skin in the game from owner / developer Total return: more than bank debt, less than equity
What We Need
To Get Started:
Overview of development opportunity Financial model / historical statements Meeting with management team Development Plan (projects, properties, timing, funds required, schedule, forecast of outcomes)
To Get to Financial Close:
Reserve report / Resource feasibility study Meeting with technical staff / third-party consultants Site visit
Contact Information
