Andros Capital Partners LLC closed a $150 million joint venture (JV) with Permian-focused Midland-Petro D.C. Partners LLC (MPDC) on Aug. 25, the Houston-based firm said in a company release.

MPDC is a private oil and gas company based in Midland, Texas, which has assembled a world-class position in the core of the Midland Basin, according to Andros Managing Partner Phillip A. Gayle Jr.

As part of the JV announced Aug. 25, Andros will fund approximately $150 million to participate in a development drilling program targeting the Spraberry and Wolfcamp formations in Midland County, Texas.

“This transaction underscores Andros’ commitment to investing in high-quality assets in partnership with talented operators,” Gayle commented in the release. “It also highlights our ability to construct a creative capital solution to enable our partner to advance their strategic objectives.”

Founded in 2020 by Gayle, Andros Capital Partners is a private investment firm primarily focused on middle-market transactions requiring between $25 million and $200 million of equity, with an ability to make much larger commitments through co-investments from its limited partners. The firm’s leadership team also includes Gregory A. Beard, former global head of natural resources and senior partner at Apollo Global Management.

Andros closed its inaugural investment fund in August 2020 at its $250 million hard cap. At the time, Gayle said the goal of the firm was to build sustainable businesses with strong cash flows in partnership with talented entrepreneurs and to provide capital solutions that enable both public and private energy companies to advance their strategic objectives.

Willkie Farr & Gallagher LLP acted as legal counsel to Andros for the drilling JV. Petrie Partners was financial adviser to MPDC and Vinson & Elkins LLP was its legal counsel.

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