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May 10, 2017  

York's Latest Offering Targets Drilling Plays

York Capital is assembling a fund that would invest in oil and gas drilling sites.

The New York firm hopes to raise $250 million to $400 million for the vehicle, which would employ a closed-end structure with unspecified investment and harvest periods. York’s partners and employees would kick in at least $30 million, with the firm’s other funds pumping $40 million into the same deals.

The plan is to put the capital to work in partnership with Houston drilling specialist Millennial Energy, with a focus on projects in Oklahoma’s Woodford Shale formation. Namely, it would pursue mineral and leasehold interests in the Sooner Trend oil field, the Anadarko basin, Canadian County and Kingfisher County — a combination of plays known as the “Stack.”

A mineral interest gives the holder the right to mine below the surface of a property. A leasehold interest forms when the holder of a mineral interest leases its mining rights to another party.

York, founded in 1991, has been working with Millennial since 2015, so far deploying $94 million through three joint ventures with the firm. Millennial, in turn, has invested $140 million across eight oil-and-gas deposits in the U.S., primarily in the Stack.

York is led by founder James Dinan and Daniel Schwartz. It had $16.2 billion under management through a mix of vehicles at yearend 2016, including a multi-strategy fund and several credit-product funds.