Wednesday, May 13, 2015

Reason #5: Why I Love To Blog -- Connecting The Dots -- May 13, 2015

Do a blog site search with this single word: Riverstone.
We can add another post to that list.

A reader sent me the link to this Forbes story. Fascinating. But I doubt few readers connected all the dots. Some random paragraphs from the article that are quite fascinating:
Goldman and Aron (where Goldman Chief Executive Lloyd Blankfein got his start) have had a deep connection with Semgroup. In 2004 two former Goldman bankers bought a 30% stake in Semgroup for $75 million through their New York private equity firm, Riverstone. Both men, Pierre Lapeyre and David Leuschen, had helped form Goldman’s commodity trading business, and Leuschen had been a director at Aron.
One possible answer: the Goldman connection. Going after Aron’s cash would complicate matters with Riverstone, which still wields sway over the board. The creditors have reason to keep Riverstone and Goldman happy; the duo has teamed up to buy myriad energy assets in recent years, most notably a $22 billion leveraged buyout of pipeline king Kinder Morgan. They are likely to team up again to buy choice Semgroup assets out of bankruptcy.
There is nothing more exciting than Wall Street interest in the Bakken. 


  1. File this under Road_to_New England. Now I more completely understand the gigantic push to get NG pipelines through NY into New England. It ain't Europe, and it ain't cheaper electricity or cleaner air, it's the giant squid again.

    1. Thank you. I had forgotten to tag the post. Smile.

      Seriously, I have a lot of fun finding dots that connect. In this case, once one gets beyond all the conspiracy theories, Riverstone and Goldman aren't buying myriad energy assets if they thing oil industry is going to crash and burn.