Vulcan Capital Management

Vulcan Capital Management

Type	Private
Industry	Private Equity
Founded	1997
Headquarters	75 Rockefeller Plaza, 18th Floor, New York City, United States
Key people	Ford F. Graham, co-founder, Kevin C. Davis, co-founder
Products	Leveraged buyout, Venture capital, Growth capital, Mezzanine capital
Website	http://www.VulcanCapital.com

Vulcan Capital Management, Inc is a private equity firm focusing on investments in distressed restructurings, acquisitions, growth capital, mezzanine capital, leveraged buyouts, recapitalizations and structured equity in the energy, natural resources and green technology sectors^[1] in the United States, Canada, Nigeria, Bangladesh and Iraq. Typical investments are between $10 million and $300 million.

History

Vulcan Capital Management (not to be confused with Vulcan Inc. and its investment arm Vulcan Capital founded by Paul Allen) was founded in May 1997 by Ford Graham and Kevin Davis, and maintains principal offices in New York, NY and Houston, TX.^[2] Since its founding in 1997, Vulcan has completed over 35 transactions worldwide, with a value exceeding $800 million through its family of partner funds and portfolio firms.

Investment focus

Vulcan Capital Management projects center around energy and natural resources sectors with a heavy focus on coal mining and power plants, water resource management, and natural gas exploration. Since 2007 Vulcan has diversified to include water treatment services and real estate development.

Investment funds

The first Vulcan investment platform, Vulcan Partners I & II was created in 1998 and was followed by NRVG, NRVG II & NRVG which invested over $300 million in the coal industry. In 2002, Vulcan created and led an investor group that acquired select power plant assets from Enron. They paid less than $100,000 for these two power plants and subsequently invested over $12 million in environmental cleaning equipment to make these plants the cleanest coal fired power plants in the North East USA. In 2003, Vulcan created and structured the acquisition of Duke Energy’s oil and gas division in the Gulf of Mexico. In 2004, Vulcan’s coal operations ranked as the seventh largest in the U.S. In 2004, Vulcan expanded its energy services company into Iraq and installed and repaired hundreds of Megawatts of power. Vulcan’s power plants were the first new post-war power plants in Iraq. In 2007, Vulcan launched Vulcan Partners III, a $400 million fund to originate and lead acquisitions and investments in Middle-Market natural resources and energy companies. In 2007, Vulcan, with its partner Graoch Associates, planned to launch Aventine Hill Real Estate Fund I, a $300 million investment focusing on acquisition, financing, operation, and disposition of rental apartment communities located throughout the United States however this Project was never enacted.^[3]

Assets and funds under management

• LaserLine - Vulcan Energy Leasing, LLC - In 2004, Vulcan created a joint venture with LaserLine Lease Finance Corporation, Plam Springs, ing, a major lease hold company. LaserLine-Vulcan Energy Leasing is engaged in the sale and lease of large electrical power systems, aircraft, marine, medical, and other capital equipment.^[4] Ford Graham took $550,000 from investors, and according to Kevin Davis in his Chapter 7 Bankruptcy case used it for his own purposes,
• North Carolina Power Holdings, LLC (NCPH) - In 2003, Vulcan acquired NCPH, a company consisting of two 35MW coal-fired power plants in the Atlantic coast region.^[5]
• Vulcan Amps, LLC - In 2002, Vulcan acquired several power plant assets from Enron. Vulcan Advanced Mobile Power Systems (AMPS) manufactures some of the world’s largest portable power generators and were the first new post-war power plants installed in Iraq. It is now cannibalized due to repeated bombings by Iraq militants.^[6] Vulcan Amps filed for Bankruptcy, in 2008.
• Vulcan Coal Partners, LP - In 2006, Vulcan purchased assets and mining equipment in Central Appalachia (Alabama, Tennessee, and Kentucky) with more than 26 million tons of coal reserves.^[7]
• Vulcan Energy International, LLC - Created in 2003, Vulcan Energy International (VEI) provides power plant solutions and services to customers world-wide. VEI’s projects include contracting as a sub contractor and minority shareholder to a Nigerian company Vulcan Elvaton Limited, which in 2008 was contracted by the Sokoto State government of Nigeria to build a $32 million (N3.8 billion) 30 megawatts LPFO/SNG fueled turbine power station. This project was never completed due to the lack of progress draw payments in contravention of the sub contract agreement.^[8] and GVEI, which announced in 2005 the investment of more than $1.6 billion in power production, coal mining and fertilizer production in Bangladesh.^[9]
• Vulcan Energy of Canada, LTD. - In 2001, Vulcan’s portfolio company acquired 70,000 acres of Canadian coal bed methane reserves with over 1.5 trillion cubic feet of natural gas.
• Vulcan Energy Solutions, LLC (VES)- Founded in 2003, Vulcan Energy Solutions provides power plant operations and maintenance services and support to the Government of Iraq.^[10]
• Vulcan Petroleum Resources Limited - Vulcan Petroleum is a 2012 formed Nigeria corporation incorporated to develop, construct, majority own, and operate 6 modular refineries (with a combined capacity of 180,000bpd) to operate in Nigeria. The MOU signed with the Ministry of Investment is stalled due to other government Ministries beauraucracy.^[11]
• Vulcan Water Resources, LTD - Vulcan Water Resources provides water engineering services and products.^[12]
• Vulcan Water Services, LLC -

References

1. "Vulcan Capital Management". BusinessWeek.
2. Vulcan Capital Management Inc. #2134947, NYS Department of State Division of Corporations Entity Information, active as of January 18, 2013.
3. Select Timeline Transactions Vulcan Capital Management, June 2012.
4. Mandel Airplane Funding & Leasing Corp. v LaserLine Props. II, LLC, Justia.com, October 3, 2011.
5. They went bankrupt. North_Carolina_Power_Holdings North Carolina Power Holdings profile, Center for Media & Democracy, June 2012.
6. Vulcan AMP, LLC profile, Businessweek, June 30, 2012.
7. Company Overview of Vulcan Coal Partners, LP, Businessweek, June 2012.
8. SOKOTO TO BUILD N3.8BN IPP –GRAHAM, Nigeria Business, February 27, 2010.
9. US energy company to invest $1.6b, The Daily Star, May 5, 2005.
10. Company Overview of Vulcan Energy Solutions, LLC, Businessweek, June 2012.
11. Nigeria inks deal with US investors on $4.5 billion oil refinery program, Platts.com, July 2012.
12. Company Overview of Vulcan Water Resources, LTD, Businessweek, June 2012.

External links

• Company website