One of the newest entrants to the Houston energy scene is CIT Energy, a business unit of CIT Group Inc., an established provider of commercial and consumer finance solutions based in New York City. CIT officially opened its Houston office in the Bank of America Tower at 700 Louisiana Street in March to provide advisory services and structured financing solutions to a broad range of energy companies, although the firm’s focus will be on the upstream sector.
Brooks J. Klimley, president of CIT Energy, will run the operation out of both the New York and Houston offices and will split his time between the two cities. Klimley previously was co-head of the Diversified Industrials Group at Citigroup. He also led global investment banking origination efforts in the natural resource sector for Bear Stearns, UBS Securities, and Kidder, Peabody.
Interviewed at his Houston office recently, Klimley said he expects most of the firm’s transactions will be upstream.
“Although we serve a wide range of clients, our focus is on the high-growth, entrepreneurial company that offers us the opportunity to make investments across the capital structure,” he said. “Houston has a reputation as the ‘Energy Capital of the World,’ so it is logical that we open an office here. It is equally logical that most of our Houston business will be oriented towards the E&P sector.”
Klimley added, “Our approach is to look for faster-growing companies and develop thoughtful capital solutions tailored to their individual needs. These entrepreneurial companies offer significant opportunities, but may face significant structural challenges in terms of executing and financing those opportunities.”
He went on to say that he expects the bulk of the firm’s solutions will be highly individualized but that the firm’s expertise is in coming up with creative capital solutions, whether they are structured debt or private equity investments.
“Our range of possible solutions is much more diverse than that of some of the larger commercial banks,” said Klimley. “We have recognized expertise in underwriting, syndicating, and holding everything from senior secured notes to common equity products.”
In addition to Klimley, CIT Energy’s senior Houston-based team includes Larry Derrett, Brian Kerrigan, and George McKean, as directors, based in Houston.
Derrett joins the firm from Mizuho Corporate Bank where he was in charge of developing the bank’s presence in the oilfield services sector. Previously, he was the founder and owner of HVAC Capital Corp., a leasing company established to provide financing solutions to commercial and industrial companies acquiring equipment used to manage and reduce energy consumption. He also served as vice president in the structured finance group at Enron Energy Services and has held positions at Coral Energy, CIBC, and InterFirst Bank. He holds a BBA degree from the University of Texas in Austin.
Kerrigan joins CIT from Capital One Bank where he focused on reserve-based lending to middle-market oil and gas companies. Previously, he was at Republic Financial Corp. where he served as managing director in the capital markets group focusing on energy equity opportunities. He also has held positions at Tractebel Power Inc., Enron North America, TXU Energy Trading, and The Fuji Bank. Kerrigan received a BS degree from the University of Texas and an MBA from Rice University.
McKean joins the firm from GE’s Commercial Lending Group where he covered the Houston mid-cap and Louisiana mid- and large-cap markets. Previously, he was with Koch Capital Markets where he developed an asset-based lending capability and executed structured credit investments. McKean also has held positions at Enron in the corporate finance group and with Barclays Bank PLC and Chemical Bank. He holds a BA from the University of Michigan and an MBA from Columbia Business School
