Vulcan Capital Management

Last updated
Vulcan Capital Management
Type Private
Industry Private Equity
Founded1997;26 years ago (1997)
Headquarters75 Rockefeller Plaza, 18th Floor, New York City, United States
Key people
Ford F. Graham, co-founder,
Kevin C. Davis, co-founder
Products Leveraged buyout, Venture capital, Growth capital, Mezzanine capital

Vulcan Capital Management, Inc (which is a different and unrelated entity to Vulcan Capital or Vulcan Inc., two companies founded by Paul Allen.) is a private equity firm focusing on investments in distressed restructurings, acquisitions, growth capital, mezzanine capital, leveraged buyouts, recapitalizations and structured equity in the energy, natural resources and green technology sectors [1] in the United States, Canada, Nigeria, Bangladesh and Iraq.[ citation needed ] with typical investments being between $10 million and $300 million.

Contents

In 2005 one of Ford's companies signed another major contract that quickly went awry. Vulcan Energy Solutions signed a $64 million contract with Iraq's minister for electricity, Aiham Alsammarae, to fix the Mulla Abdullah power plant in Kirkuk. An employee, J.C. Adams, was at the meeting and had worked on some of Vulcan's subcontracts in Iraq, and later testified that he was owed $150,000 in unpaid salary. Adams testified that he had been told he would finally be paid his salary if Vulcan won the Mulla Abdullah contract and that Ford Graham told a group of employees that he had agreed to include a $3 million “engineering fee” in the final contract as a bribe to get the contract.

History

Vulcan Capital Management (not to be confused with Vulcan Inc. and its investment arm Vulcan Capital founded by Paul Allen) was founded in May 1997 by Ford Graham and Kevin Davis, and maintains principal offices in New York, NY, and Houston, TX. [2] Since its founding in 1997, Vulcan has completed over 35 transactions worldwide, with a value exceeding $800 million through its family of partner funds and portfolio firms.

Ford Graham, 56, a 1986 alumnus of Princeton University, and his wife, Katherine Graham, 55, were arrested on Nov. 21 and remanded to the Bureau of Prisons and taken to the Metropolitan Correctional Center in Manhattan. [3] Graham, a former Princeton resident accused in a lawsuit of running a $5 million Ponzi scheme, has been released from the Metropolitan Correctional Center in Manhattan after spending more than two months there. Graham, together with his wife, Katherine, had been ordered jailed by federal judge Loretta A. Preska for failing to provide documents related to an earlier fraud case that dates back to 2003. The couple are being sued by Susan Flannigan, who worked for one of Ford Graham's companies, Vulcan Power Group. She successfully sued Graham for $2 million in unpaid commission and salary but has not collected the judgment. (U.S. 1, December 4, 2019.) Katherine Graham was released after six days, and on January 24, Preska ordered Ford Graham released under the conditions that he lives 100 miles or less from the courthouse in New York, comply with discovery demands, and help recover certain documents related to the case.

Investment focus

Vulcan Capital Management projects center around energy and natural resources sectors with a heavy focus on coal mining and power plants, water resource management, and natural gas exploration. Since 2007 Vulcan has diversified to include water treatment services and real estate development.

Investment funds

The first Vulcan investment platform, Vulcan Partners I & II was created in 1998 and was followed by NRVG, NRVG II & NRVG which invested over $300 million in the coal industry. In 2002, Vulcan created and led an investor group that acquired select power plant assets from Enron. They paid less than $100,000 for these two power plants and subsequently invested over $12 million in environmental cleaning equipment to make these plants the cleanest coal fired power plants in the North East USA. In 2003, Vulcan created and structured the acquisition of Duke Energy's oil and gas division in the Gulf of Mexico. In 2004, Vulcan's coal operations ranked as the seventh largest in the U.S. In 2004, Vulcan expanded its energy services company into Iraq and installed and repaired hundreds of Megawatts of power. Vulcan's power plants were the first new post-war power plants in Iraq. In 2007, Vulcan launched Vulcan Partners III, a $400 million fund to originate and lead acquisitions and investments in Middle-Market natural resources and energy companies. In 2007, Vulcan, with its partner Graoch Associates, planned to launch Aventine Hill Real Estate Fund I, a $300 million investment focusing on acquisition, financing, operation, and disposition of rental apartment communities located throughout the United States however this Project was never enacted. [4]

Assets and funds under management

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References

  1. "Vulcan Capital Management". BusinessWeek.
  2. Vulcan Capital Management Inc. #2134947, NYS Department of State Division of Corporations Entity Information, active as of January 18, 2013.
  3. "Princeton couple accused of Ponzi scheme arrested for contempt of court in separate case ⋆ Princeton, NJ local news %". 25 November 2019.
  4. Select Timeline Transactions Vulcan Capital Management, June 2012.
  5. Mandel Airplane Funding & Leasing Corp. v LaserLine Props. II, LLC, Justia.com, October 3, 2011.
  6. They went bankrupt. North_Carolina_Power_Holdings North Carolina Power Holdings profile, Center for Media & Democracy, June 2012.
  7. Vulcan AMP, LLC profile, Businessweek, June 30, 2012.
  8. Company Overview of Vulcan Coal Partners, LP, Businessweek, June 2012.
  9. SOKOTO TO BUILD N3.8BN IPP –GRAHAM, Nigeria Business, February 27, 2010.
  10. US energy company to invest $1.6b, The Daily Star, May 5, 2005.
  11. Company Overview of Vulcan Energy Solutions, LLC, Businessweek, June 2012.
  12. Nigeria inks deal with US investors on $4.5 billion oil refinery program, Platts.com, July 2012.
  13. Company Overview of Vulcan Water Resources, LTD, Businessweek, June 2012.