Energy-focused private equity firm Tailwater Capital LLC closed its third fund, Tailwater Energy Fund II LP, at $650 million. Since launching in 2013, Tailwater has raised more than $1.4 billion across three funds, Tailwater Energy Fund I, Tailwater E&P Opportunity Fund and the recently closed Fund II. The team will invest Fund II across the midstream value chain.

Tailwater is led by founding partners Edward Herring and Jason Downie, who have worked together for 16 years and executed 35 transactions representing $11 billion of transaction value. Fund II launched in early 2014 with a target of $400 million and had its final close on Dec. 5 at its hard cap.

Capstone Partners LP served as the placement agent for Fund II and Weil, Gotshal & Manges LLC provided legal counsel.