SRC, a Delaware limited liability company, is an SEC-registered investment adviser that was founded
in January 2012 with its principal place of business in Houston, Texas. SRC is led by Managing
Partners Benjamin A. Stamets and Joshua L. Batchelor (the “Principals”), each of whom is a principal
owner of the Firm.
SRC provides investment management and advisory services solely to affiliated private equity funds
(each a “Fund,” and collectively, the “Funds”) and their respective co-investment vehicles, parallel
funds and alternative investment vehicles. SRC’s purpose and objective is to generate long-term capital
appreciation by targeting private equity or equity-like investments in companies primarily engaged in
the lower middle-market segment of the onshore North American upstream oil and gas sector.
The Funds include Sage Road Energy I, LP, Sage Road Energy II, LP and SRC Banner Holdings, LLC
(a co-investment vehicle related to Sage Road Energy I, LP). The general partner or manager of each
Fund (each a “General Partner,” and collectively, the “General Partners”) is an entity controlled by
SRC. Each General Partner, together with the Principals and certain investment professionals of SRC,
directly or through one or more affiliated entities, will invest in each of the Funds. The General
Partners engage the Management Company to manage the activities of the Funds and their respective
co-investment vehicles, parallel funds and alternative investment vehicles.
SRC is managed by an experienced team of senior investment professionals who have extensive
backgrounds in the private equity and energy industries. Led by the Principals, the SRC team is
composed of investment professionals with many years of collective energy and private equity
experience. SRC believes the composition and continuity of its team provide the Firm with a
sustainable competitive advantage and an extensive network of industry relationships. The SRC team
has a demonstrated ability to source and execute new investments and manage a portfolio of operating
companies, having worked on numerous investments over the past two decades at both SRC and
prior firms.
The experience and specialization of the SRC investment team enables the Firm to play a decisive role
in portfolio company management and operations while maintaining perspective on strategic
positioning, valuations, financing parameters and exit/monetization potential. For its Funds, SRC
performs in-depth due diligence regarding proposed investments, structures and evaluates platform
acquisitions and add-on acquisitions to portfolio companies, works closely with portfolio company
management to provide strategic operating and financial advice, examines and implements succession
planning, and identifies multiple exit options prior to an initial investment. SRC investment
professionals are typically appointed as board members of portfolio companies in which a Fund has
an interest. SRC investment professionals closely monitor the business activities of the portfolio
companies of each Fund and frequently provide management with strategic advice and access to
industry resources.
Co-Investments
The Funds may also have related investment vehicles, including alternative investment structures and
co-investment vehicles. Subject to the terms of the Funds’ governing documents, SRC may in its sole
discretion
give certain persons, including investors or third parties, an opportunity to co-invest in
particular portfolio investments alongside one or more of the Funds. Co-investment partners may
include limited partners of the Funds, employees or affiliates of SRC, financing sources, portfolio
company management team members, and others. In addition to the aforementioned co-investment
vehicles, co-investors also may be offered an opportunity to invest directly in a portfolio company.
Allocation of any such opportunities may create a conflict of interest as they are, by nature, limited
and participation is not possible for all investors in the Funds.
Lock-Ups
Except as set forth in a respective Fund’s limited partnership agreement, an investor in any of the
Funds generally may not rescind any part of its capital commitment or otherwise withdraw from any
of the Funds. Private equity fund investing is appropriate only for those with sufficient resources to
have capital locked up for long periods of time and who are able to bear the risk of significant losses.
Investors in each Fund should refer to the respective Fund’s limited partnership agreement for
complete information regarding lock-ups and penalties or other consequences for failure to fulfill
capital calls made by the Fund.
Side Letters
SRC or the applicable General Partner, as appropriate, has and may in the future, waive or modify
certain terms (including economic or other terms) of investment for certain large or strategic investors
in side letters or otherwise, in its sole discretion, including but not limited to, co-investment
opportunities, increased Fund and portfolio company transparency, reduced management fees or
performance fees, and more frequent or varied formats or modes of portfolio reporting.
Important Additional Considerations
SRC does not tailor advisory services to the individual or particular needs of the investors in the Funds.
Such investors accept the terms of advisory services as set forth in each respective Fund’s offering
documents. The Firm has broad investment authority with respect to the Funds and, as such, investors
should consider whether the investment objectives of the Funds are in line with their individual
objectives and risk tolerance prior to investment. The information provided herein merely summarizes
the detailed information provided in each Fund’s offering and organizational documents. Existing
investors in the Funds and prospective investors in any new Fund launched by SRC should be aware
of the substantial risks associated with investment as well as the terms applicable to such investment.
These risk factors and other detailed information are provided in each respective Fund’s offering
documents, limited partnership agreement and other organizational documents.
None of the Funds are required to register under the Securities Act of 1933 or the Investment
Company Act of 1940 in reliance upon certain exemptions available to issuers whose securities are
not publicly offered. SRC manages each Fund on a discretionary basis in accordance with the terms
and conditions of such Fund’s offering documents, limited partnership agreement and other
organizational documents.
Assets Under Management
As of December 31, 2023, SRC had $182,527,714 in discretionary assets under management. SRC
does not manage any assets on a non-discretionary basis.