U.S. oil and gas M&A bankers are having a great start to the year. Thomson Reuters says energy and power was the biggest sector for U.S. M&A deals in the first quarter and Dealogic says U.S. targeted oil and gas M&A had the fastest start to the year and the second highest quarter ever. Even so, one of Houston’s top oil and gas M&A bankers has decided to call it a day.
Matthew Loreman, a managing director in Evercore’s Houston office has quit and joined Development Capital Resources, a new fund focused on providing development capital to American and European exploration and production companies. The fund was set up this month by Ares management. Loreman’s joined as COO. His arrival follows four years at Evercore and eight years at J.P. Morgan.
M&A bankers moving into private equity are nothing unusual, but most M&A bankers do it early in their careers. Our research suggests the average time in M&A before a private equity switch is just 24 to 34 months. In this sense, Loreman looks unusual – although he is going in as COO rather than a simple investor.
Right now, DCR only appears to have two employees: Loreman and Ronnie Scott, a seasoned oil executive. It’s already made $450m investments.