Frequently Asked Questions
What is Quantum's primary focus? We are primarily focused on making $100 million to $400 million investments in energy companies that are managed by highly successful entrepreneurs and possess identifiable competitive advantages. We target investments in the oil and gas upstream, midstream and power sectors, but will consider opportunities across the entire energy industry.
How much capital does Quantum currently have available? Our total capital under management exceeds $5.7 billion.
How many companies are currently in Quantum's portfolio? We currently have 22 active portfolio company investments. Additionally, we have successfully sold or monetized 24 portfolio investments for total proceeds in excess of $3.8 billion.
How is Quantum unique from other private equity firms? Quantum brings more to the table than just capital. As your partner, we have a commitment and obligation to add value and help each management team we back to maximize their net worth. Unlike other firms, we have in-house experts from every major discipline (finance, petroleum engineering, geology, geophysics, land, tax, accounting and law) needed to successfully invest in energy, thus enabling us to understand the opportunities and challenges our portfolio companies will face as well as giving us tools to help them succeed. Several members of the Quantum team have actually been CEOs and division heads of energy companies, thus giving us a unique perspective that purely financial investors can't have. Additionally, Quantum targets investing in 8 to 10 portfolio companies per fund, significantly decreasing the chances that our portfolio companies will compete with each other and significantly enhancing our ability to achieve above-market returns for our investors relative to other energy private equity funds pursuing a mutual fund approach by having 20 to 30 companies per fund.
What is the typical timeframe to go through the Quantum investment process? Due to the quality, accessibility and depth of our investment team, we pride ourselves on our ability to work very efficiently with prospective management teams in order to close transactions quickly. Depending on the complexity of the transaction, the nature of the company that is being funded (i.e. start-up vs. company with existing assets) and the timing of the management team, the typical transaction takes 45 to 60 days to close, but when necessary we have closed transactions in less than 30 days. Because Quantum employs in-house technical services and legal/tax counsel, the process can move very quickly in order to meet a company's goals relating to timing and expectations.
Does Quantum become involved in the day-to-day activities of the businesses in which it acquires and invests? Quantum believes in backing great management teams and not getting in their way to build a successful company. Because Quantum approaches its portfolio companies in a spirit of cooperation and teamwork we work together to help build their businesses and increase equity values. Our extensive background of managing, investing in and financing energy companies, as well as our ability to understand the technical aspects of the energy business, allows us to provide critical insight and suggestions to the operational, technical, financial and strategic decision-making processes of our portfolio companies, making Quantum a highly desirable partner for energy entrepreneurs.
What is Quantum Resources? Founded in 2006, Quantum Resources (QR) is a Houston-based property acquisition fund with more than $1.2 billion of equity commitments. QR is co-managed by Quantum Energy Partners and Aspect Energy, LLC. QR is focused on generating attractive risk-adjusted rates of return primarily from direct acquisition, cost effective management, and enhancement and development of long-lived oil and gas assets. The company targets acquisitions in the $200 million to $2 billion size range, and since inception has acquired more than $600 million of properties in nine states, consisting of 80 fields in the Permian basin, Mid-Continent, Gulf Coast and Rocky Mountain regions.
Will Quantum invest in companies with operations outside of the U.S.? Yes. We are very active in Canada and will selectively consider opportunities outside of North America that are managed by topflight teams with a strong local presence in the countries in which they operate and that fit Quantum's criteria for execution of a successful business plan.
Is Quantum able to invest in limited partnerships and LLCs, as opposed to corporations? Yes, and this provides significant tax advantages to our portfolio companies' management teams.