About Our Company

Making Good Companies Great:
A Strategic Approach to Building Value.

Flatrock Energy Advisors logoEnCap Flatrock Midstream is a venture capital firm with a singular focus: identifying, investing in, and enhancing the value of great businesses and attractive assets in the North American midstream energy sector. Founded in 2008 by Flatrock Energy Advisors and EnCap Investments L.P., the firm is guided by a disciplined, persistent approach to value creation through the rigorous application of intellectual and financial capital. The firm manages the EnCap Flatrock Midstream Funds I, II, III, IV and V, which together have over $9.5 billion in capital commitments from a broad range of prestigious institutional investors.

In Investing, Knowledge Is Power.

At our core, we are a people business. We believe that EnCap Flatrock Midstream brings together the best and brightest in the midstream industry. We forge strong partnerships with seasoned and talented management teams, providing the capital, expertise and operational support required to achieve superior results and top-tier returns for our investors. The principals and investment professionals at EFM have decades of deep experience in the energy industry, covering every technical, financial, commercial, operational and managerial aspect of the upstream, midstream and downstream sectors of the business. We utilize this specialized knowledge every day to uncover opportunities, perform due diligence and fuel the growth of our portfolio companies. We manage our portfolio with rigor, applying a patient and thoughtful philosophy that prioritizes capital preservation and value creation and adheres to the risk management principles that have guided our founders for decades. Our combined extensive expertise in midstream, broad financial and investment experience and our vast network of industry contacts are central to our success.

We Operate From a Position of Strength.

EnCap Investments logo markEnCap Investments is a leading provider of venture capital to North America's independent energy industry. Since its inception in 1988, EnCap has raised 25 institutional funds totaling more than $40 billion and today manages capital on behalf of over 350 institutional investors. By combining EnCap’s legacy with the expertise of the Flatrock team, we have created a firm with an unmatched value and leading industry experience. Our ability to rapidly access capital enables us to take advantage of new midstream opportunities as soon as they present themselves. This financial strength combined with our strong operational knowledge gives EnCap Flatrock Midstream the capabilities required to move a business plan forward and transform concept to reality in a short time.

Investment Fundamentals

We are midstream specialists.
Our team are experts in hydrocarbon and energy evolution-related midstream infrastructure. Our investment focus is in hard-asset businesses, including gathering and transportation pipelines, treating and compression assets and services, processing and fractionation plants, storage and terminalling facilities, logistics handling and disposal facilities, and other such assets or companies providing similar services.

There is no substitute for experience.
We support seasoned management teams that have proven track records of success and fit a well-established profile. Specifically, we look for companies that have strong technical and operational skills, a demonstrable record of value creation, a well-defined business plan and a common understanding of risk and midstream fundamentals.

We target companies in the early stages of developing their business plans.
Small companies have greater growth prospects than their larger counterparts and significant opportunities to benefit from the operating leverage created by spreading fixed costs over an expanding revenue base. These companies also receive a significant increase in the valuation multiples applied to their operating profits as they become larger and more sustainable over time. We firmly believe that growth companies make excellent investments when they are nurtured and advised by a capital provider with deep experience in the midstream sector and expertise in managing and building businesses, like EnCap Flatrock Midstream.

We are relationship driven.
Developing strong internal and external relationships is essential to our mission at EnCap Flatrock Midstream. We look for management teams that are cohesive and value teamwork, just as we do. At the end of the day, midstream is a service business. We only invest in management teams that understand the value of building strong relationships and put a premium on providing superior customer service.

We are disciplined about risk management.
We take a conservative, disciplined approach to advancing capital, doing so in incremental stages as each business plan proves itself over time. We limit the use of leverage to fund growth and apply our thoughtful investment philosophy that balances capital preservation with value creation using the risk management tools that have guided our founders for three decades.