As an investment manager with private-equity firm Energy Ventures, Kristian Lier can get both his technology and deal fixes. A native of Norway, Lier earned a degree in marine/offshore engineering from the Norwegian University of Science and Technology. After a stint in offshore technology, he joined Norwegian in- vestment banker Pareto Securities as a research analyst in oil and gas.

In 2004 he co-founded a management consulting firm, Bangstad & Co., based in Oslo. It was focused on developing value driver models for energy companies. When that firm was absorbed in 2005 into international consultant BearingPoint, he decided to move to the U.S.

At the time, companies were rushing to build LNG import facilities to shore up dwindling U.S. natural gas supplies. Lier joined Torp LNG, which was backed by Norwegian private-equity provider Hitec Industries. As vice president of business development, he sourced LNG and promoted the floating regasification project to other importers.

In 2007, DNB Markets tapped Lier to open its energy investment banking office in Houston. He specialized in crossborder M&A. “It was a very good niche, mapping out the technology landscape in Norway and bringing those ideas to U.S. buyers,” he said. He represented private-equity firms and service companies in the U.S. while handling sellside mandates for Norwegian companies seeking stateside buyers.

While at DNB, he got to know Energy Ventures and in 2010 joined the technology specialist. He sources deals, negotiates investments, sits on boards and helps portfolio companies grow and access markets. Time flies—he and his family are in the ninth year of what was to be a one-year stint in the U.S.

Investor: What is EV’s niche?

Lier: We invest in middle-market companies that need smart capital and have a unique value proposition—a technology or offering setting them apart. Our investment size is typically $10 to $35 million. We like this size because it is not too early. Pure venture capital can require a lot of time to take to market and commercialize. At this size we can influence a company’s strategy, introduce technologies and products that are complementary and tap into our large network.

It was an interesting change for me. I came to the U.S. very proud of Norwegian technology and selling that technology to buyers. Now, with the shale boom, we see unbelievable amounts of innovation in the U.S. in the oil and gas space—and a rich deal flow.

Investor: What do you look for in upstream technology?

Lier: Two things are important for operators: reduced cost and increased production. If you have a solution that is cheaper and will help operators increase production, you could have a promising company on your hands.

Investor: Some examples?

Lier: We acquired a Canadian company, ProSep, and opened a Houston shop. It has off-the-shelf and proprietary technologies for processing oil, gas and water, and a distribution network we really liked. That’s a perfect company, where we can roll in technologies. The trend is for increased water production from wells, and it’s a huge area of opportunity both onshore and offshore.

One of the proprietary technologies involves polishing water to remove water solubles to make it completely clean. The company’s product range and differentiation make it possible to increase production while saving significant operating expenses, using fewer chemicals and water.

Another example is OsComp. With growing shale gas production in the U.S., there is a big price differential between natural gas and conventional fuels. The trend is to convert rigs, frack pumps and other oilfield equipment to natural gas or to install dual-fuel kits. OsComp is supplying frack pumps, drilling rigs and gas-lift applications for use with CNG. It is a logistics play, but we also have proprietary technology around doing this, so we can do it extremely efficiently. In gas lift, we’re replacing coiled tubing and nitrogen with CNG, which also is a large cost advantage.

Investor: Are IPOs increasingly an exit strategy?

Lier: The IPO market has been vibrant. We are looking into both the IPO and the MLP route for some of our companies.

Investor: What is the time frame for international development of shales?

Lier: It will not happen in the compressed time frame of the U.S. shales, but it will happen. The Chinese are working hard on it, as is Argentina, and there are pockets in Europe. Environmental concerns are strong, particularly in Europe, and it’s important for the industry to offer solutions. There is a great track record in the U.S., a lot of data to help people understand this is a viable and much-needed way forward.

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