Entoro Capital LLC launched a new A&D service on June 26 that the Houston-based global investment bank said will bring new liquidity to an upstream market in need of new capital sources.

The new service, Entoro A&D Xpress, is an energy asset sales platform for the sale of upstream assets and minerals that will feature expanded distribution channels and new valuation software. The primary targets for A&D Xpress are A&D projects between $10 million and $100 million and minerals transactions above $100,000.

James C. Row, Entoro Managing Partner, believes A&D Xpress will be well received in the middle market.

“In this cost-conscious market, we will offer our distribution channels to sellers that have the ability to technically frame and sell their assets but lack the systems or distribution capabilities to market effectively,” Row said in a statement on June 26.

A&D Xpress’ platform is designed to broker energy assets through a global distribution network on Entoro’s proprietary securities platform, OfferBoard. Entoro’s OfferBoard platform has distribution agreements with registered investment advisor (RIA) groups and is the Houston chapter of family office networks.

By utilizing its OfferBoard platform, Entoro estimates that A&D Xpress will reach an audience of potential buyers that is three times larger than traditional sales efforts.

“In a market like A&D, a seller wants to have their project seen by the largest buying audience possible,” said Christopher George, Entoro Managing Director, in a statement. “Access to a new pool of capital, such as family offices and direct to influential RIAs, is necessary for the liquidity of the energy industry.”   

Additionally, A&D Xpress will deploy Lower48 Analytics, a comprehensive SaaS platform hosted on Google Cloud, that will offer sellers and buyers a common valuation tool for each listed asset.

In addition with Wall Street-quality financial analytics, Lower48 Analytics CEO Simina Farcasiu said the technology offers an unprecedented level of transparency and efficiency.

“Transparency is the key to meaningful liquidity in the upstream market, and Lower48 provides a breakthrough in transparency and accuracy,” Farcasiu said in a statement. “With Lower48, A&D Xpress will enable all buyers and sellers to make informed, real-time purchasing decisions.”  

A&D Xpress will offer three levels of service with a focus towards negotiated-by-seller transactions for the lowest cost to sellers. Depending on the level of service, sellers can select from self-directed to full service. In total, the service provided is estimated to be 30% to 60% lower than market rates, according to the company release.

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