EIG Global Energy Partners

EIG Global Energy Partners LLC

File:EIG Partners.png
Formerly	TCW Energy & Infrastructure Group
Company type	Private
Industry	Investment management
Founded	1982 (1982)
Headquarters	Washington, D.C., U.S.
Key people	Robert Blair Thomas (Chairman and CEO) Randall Wade (President)
Products	Private credit Private equity Mezzanine capital Infrastructure fund
AUM	US$23.5 billion (March 2023)
Number of employees	134 (March 2023)
Website	eigpartners.com

EIG Global Energy Partners (EIG) is a U.S.-based investment firm with its main office located in Washington, D.C.. The company specializes in investments within the energy sector and maintains a global presence through additional offices in Hong Kong, Houston, London, Rio de Janeiro, Seoul, and Sydney.

As of 2023, Infrastructure Investor ranked EIG as the fifth-largest investor in infrastructure debt worldwide, based on total fundraising achieved over the preceding five years.

Background

Established in 1982 under the name TCW Energy & Infrastructure Group in Los Angeles, the firm concentrated on energy infrastructure investments via mezzanine debt and private equity. Its primary focus was on small to mid-sized companies mainly situated in OECD nations.

In 2007, the firm introduced TCW Energy Partners, a feeder fund designed exclusively for institutional investors to invest in projects managed by EIG. This fund was listed on Goldman Sachs' GSTrUE private exchange.

EIG separated from TCW in January 2011 to operate autonomously and leverage growth opportunities without regulatory limitations, relocating its headquarters to Washington, D.C.

By June 2011, TCW Energy Partners changed its name to Gateway Energy & Resource. In February 2012, China Investment Corporation acquired a minority interest in EIG, reflecting strategic involvement from international sovereign wealth funds.

EIG planned to list Gateway on the Hong Kong Stock Exchange in 2012 to expand investor access but withdrew due to unfavorable market conditions. A subsequent attempt at a backdoor listing through China Development Bank International Investment was discontinued in August 2013.

In March 2014, Affiliated Managers Group purchased an undisclosed minority stake in EIG, bolstering its investment portfolio and industry collaborations.

Notable deals

In April 2021, a consortium led by EIG purchased a 49% ownership interest in Saudi Aramco’s oil pipeline operations for $12.4 billion.

In March 2023, EIG partnered with Brookfield Corporation to acquire Origin Energy for $10.2 billion. Under this agreement, EIG assumed control of Origin’s liquefied natural gas division. The Australian Competition & Consumer Commission granted approval for the acquisition in October 2023. However, the transaction was terminated in December 2023 after opposition from Origin shareholders—led by AustralianSuper—prevented reaching the required 75% approval threshold.

The Carlyle Group acquisition of TCW

In August 2012, EIG initiated legal proceedings to obstruct The Carlyle Group’s purchase of its former parent company TCW. The suit referenced contractual rights linked to a joint venture formed during EIG’s spin-off from TCW. EIG contended that the acquisition posed risks of exposing confidential information to Carlyle, a competitor. Industry insiders indicated that EIG’s objective was to terminate its relationship with TCW by leveraging the lawsuit.

By January 2013, both parties reached an agreement resulting in EIG withdrawing its opposition. As part of the settlement, EIG discontinued payments to TCW concerning new funds it introduced. Subsequently, Carlyle finalized its acquisition of TCW from Société Générale in February 2013.

Intervention Energy Holdings

In 2012, Intervention Energy Holdings obtained $200 million through senior secured notes from EIG to support its well development initiatives. However, by the autumn of 2015, the company defaulted on its obligations, still owing EIG $140 million. On May 20, 2016, Intervention filed for Chapter 11 bankruptcy protection despite EIG's legal challenge claiming the filing breached an agreement that required unanimous shareholder consent. The court ruled in favor of Intervention on June 6, 2016, establishing a deadline of November 15 to arrange new financing aimed at repaying EIG.

Towards the end of October 2016, EIG renewed its objection to the bankruptcy proceedings, highlighting Intervention’s inability to secure the necessary funding. Subsequently, in November 2016, the court dismissed Intervention’s Chapter 11 case, enabling EIG to assume control over the company.

Relationship with Aubrey McClendon and Chesapeake Energy

EIG extended over $1.2 billion in personal loans to Aubrey McClendon, former Chesapeake Energy CEO, which funded his personal investments and drilling expenses. This arrangement raised questions regarding corporate governance at Chesapeake but did not implicate EIG in any misconduct. EIG maintained a longstanding partnership with McClendon that included early-stage financing instrumental in supporting Chesapeake's initial public offering in 1993 as well as investments in affiliated enterprises like SandRidge Energy and Permian Resources.

EIG contributed $50 million to SandRidge Energy at its inception by Tom L. Ward, a former Chesapeake executive; this stake more than doubled in value by the time SandRidge went public in 2007. Prior to McClendon’s passing in March 2016, EIG had foreclosed on his oil well interests due to unpaid loans, thereby strengthening its hold on these assets.