DALLAS, July 16, 2026 /PRNewswire/ — Tailwater Capital, LLC (“Tailwater”) and its affiliate Tailwater E&P, LLC (“TW E&P”), today announced the final close of Tailwater Royalties Fund II, LP (the “Fund”), with total commitments of approximately $170 million, which is 60% larger than Tailwater’s inaugural Royalties Fund.
The Fund is a continuation of the yield-focused strategy established in Tailwater’s initial royalties fund and was formed to further expand Tailwater’s upstream footprint through the acquisition of mineral and royalty interests across Tier 1 U.S. shale basins.
The Fund has already deployed or committed approximately half of the capital over 30 Permian Basin transactions, building a diversified portfolio of mineral and royalty interests under high-quality operators.
“We are pleased to receive support from a diverse set of existing and new investors, including family offices, asset management firms, RIAs, energy-specific investment firms, and foundations, as we close Tailwater Royalties Fund II,” said Doug Prieto, Tailwater Partner. “The growth of Fund II relative to our inaugural fund reflects the strength of our royalties platform, the high quality of the TW E&P team, our disciplined sourcing strategy, and the compelling opportunity set we continue to see across the minerals market. We believe the current environment presents an excellent opportunity to continue building a differentiated portfolio of Tier 1 mineral interests.”
The Fund benefits from Tailwater’s differentiated Full Immersion investment model, leveraging the firm’s broad information ecosystem to enhance sourcing, underwriting, and execution capabilities across its investment platforms.
“Royalties remain an attractive strategy for investors seeking current income and long-term upside through ownership of high-quality mineral assets,” said Edward Herring, Tailwater Co-Founder and Managing Partner. “Fund II builds on the success of our first royalties vehicle and reflects Tailwater’s commitment to creating differentiated opportunities across the energy value chain.”
About Tailwater Capital & Tailwater E&P
Dallas-based Tailwater Capital is an energy and infrastructure private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions. Tailwater E&P, the upstream platform of Tailwater Capital, specializes in acquiring and managing minerals, royalties, and both operated and non-operated working interests in North America’s premier resource plays. Tailwater Capital has raised more than $6 billion in committed equity capital since inception, and the team has executed more than 300 transactions representing over $29 billion in value. For more information, please visit www.tailwatercapital.com.
Contact
Jill McMillan
Managing Director, Communications & Public Affairs
Phone: 214-489-7047
Email: jmcmillan@tailwatercapital.com
Forward-Looking Statements
Includes non-Tailwater controlled capital pursuant to the Tailwater led management buyout processes for which Tailwater provides management related services.
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SOURCE Tailwater Capital
