Kelso Fund VIII Announces Initial Public Offering of Tallgrass Energy Partners GP, LP
May 6, 2015
Kelso is pleased to announce the pricing of the initial public offering of Tallgrass Energy Partners GP, LP (“TEGP”; NYSE: TEGP) on May 6, 2015. TEGP, which owns the general partner of Tallgrass Energy Partners, LP (“TEP”; NYSE: TEP) and 20 million common units of TEP, sold 47,725,000 Class A shares at $29.00 per share, raising $1.4 billion of gross proceeds. The Class A shares began trading on the New York Stock Exchange on May 7th and closed their first day of trading at $31.75 per share, an increase of 9.5% above the IPO price.
Kelso initially invested in Tallgrass in September 2012 in conjunction with the acquisition of certain midstream assets from Kinder Morgan as part of an FTC-mandated divestiture related to Kinder Morgan’s acquisition of El Paso Corporation. Kelso leveraged its internal midstream expertise and the expertise of its KSN members Forrest Wylie and Scott Hobbs in identifying and pursuing the assets. During this process, Kelso was introduced to David Dehaemers and his team. David (the second employee at Kinder Morgan) had deep midstream experience and had assembled an impressive team of midstream executives and developed a strategy around the assets, notably the Rex and Pony Express pipelines.