Campbell Lutyens acts as exclusive financial advisor to Tailwater Capital on its $500 million transaction to recapitalize Producers Midstream II
NEW YORK AND DALLAS, October 8, 2025 -- Campbell Lutyens, the world’s leading independent private markets advisor, announces its role as advisor to Tailwater Capital LLC (“Tailwater Capital”), an energy and infrastructure private equity firm, on the formation of a $500 million continuation vehicle (“CV”). Proceeds from the transaction are committed to extend and grow Tailwater’s partnership with Producers Midstream II, LLC (“Producers Midstream” or the “Company”), a leading provider of midstream solutions in New Mexico, Texas and Oklahoma.
The continuation vehicle, managed by Tailwater Capital, and anchored by Secondaries at Goldman Sachs Alternatives is part of a $1.1 billion recapitalization. Additional equity will be committed through Tailwater’s newly formed Fund V and related vehicles. In parallel, Producers Midstream expanded its senior secured credit facility from $400 million to $600 million, led by Texas Capital Bank, strengthening its balance sheet and increasing flexibility to fund future projects.
This transaction represents a strategic milestone for Tailwater Capital and Producers Midstream, enabling the Company to accelerate development across its diversified asset base, which includes over 3,300 miles of pipeline and approximately 860,000 dedicated acres. The platform’s Lea County system, anchored by more than 85,000 acres of long-term dedications, is expected to be a key growth driver amid upstream activity, particularly in the Northern Delaware Basin.
Clay McCoy, who led the transaction for Campbell Lutyens, said: “We’re pleased to have supported Tailwater Capital in structuring and executing this multi-faceted transaction. The success of the raise is testament to Tailwater’s disciplined, research-driven approach to value creation and partnerships with top management teams".
Over the last 10 years Campbell Lutyens has raised and advised on more than $713 billion in private equity, private credit and infrastructure fund placements, secondary advisory and GP capital advisory assignments.