Cadent focuses exclusively on energy investments. Our team is passionate about the industry, which we believe will continue to produce outstanding investment opportunities.

The energy industry is entering a sustained period of displacement, reconfiguration and increased capital investment.

Demand for energy is growing in line with GDP in the developed world and significantly faster in emerging economies such as China. At the same time, global hydrocarbon reserves are being depleted at record rates. To meet the future demand for energy, oil and gas operators are increasingly focusing their efforts on unconventional and frontier reserves, such as those found in the deepwater, oil sands, or coal bed methane formations. Higher spending on infrastructure, technology and services result from this change in focus.

Adding to the growing imbalance between conventional energy production and global demand, much of the infrastructure used in most sectors of the energy industry is reaching the end of its useful life. Owners and operators of energy assets are faced with higher costs to maintain, refurbish or replace this aging infrastructure.

The International Energy Agency estimates that $20.0 trillion of global capital investment will be required between 2005 and 2030, of which just over half will be used to maintain current capacity. Of this amount, approximately $4.1 trillion will be invested in North America. Increased capital spending and changing fundamentals represent an attractive investment environment for energy.

Notwithstanding the favorable climate, investing in the inherently complex, technical and volatile energy industry requires specialized knowledge and experience. As a focused energy investment team with years of experience and numerous industry contacts, Cadent has the expertise and network to initially identify these opportunities and spot industry winners.

We believe this high degree of specialization provides us with a true competitive advantage, not only in evaluating potential investments and executing transactions, but also in adding value to our portfolio companies.

Investment Universe
Cadent defines the energy industry as encompassing the hydrocarbon and power sectors together with related businesses providing products and services to the industry. Specifically, our investment universe includes:

Hydrocarbon

• Exploration and Production- Owners, developers and operators of oil and gas reserves.

• Oilfield Services and Equipment- Service providers, manufacturers and distributors of products used in the development, production, gathering, transportation, maintenance, processing, refining and distribution of hydrocarbons. These businesses include: seismic equipment and services, drilling, well logging, well production, reservoir management, offshore supply and transportation, and rig equipment construction and maintenance.

• Midstream- Owners, developers and operators of assets used to gather, transport and process hydrocarbons. Such assets include: natural gas and crude oil gathering, transportation, processing and storage facilities.

• Downstream- Owners, developers and operators of assets used to convert raw and intermediate hydrocarbons into end-products as well as distributors and marketers of the end-products. Such businesses include: refineries, product pipelines, terminals, tankers, and retail and wholesale marketers.

Power

• Generation- Owners, developers and operators of assets used to produce electricity. Such assets include: conventional power plants (oil, gas, coal, hydro and nuclear) and alternative power sources (wind, solar and thermal).

• Transmission- Owners, developers and operators of assets used to transport power from the generation plants to local distribution systems. Such assets include: transmission lines, transformers, switchgear and monitoring systems.

• Distribution- Owners, developers and operators of assets used to distribute power from the transmission systems to individual end users. Such assets include: power lines, transformers, switchgear, metering and monitoring systems.

• Power Services and Equipment- Service providers, manufacturers and distributors of products used in the development, operation and maintenance of power generation, transmission and distribution facilities. This sector comprises generation equipment and associated spare parts, monitoring and measurement systems, cleaning and maintenance services, engineering and construction, meter reading, power line maintenance and testing, transformer and electrical equipment refurbishment and disposal services.

For specifics about what we are looking for in our investments, visit the "Investment Criteria" section by
clicking here.