The Fort #387 - Ken Hersh - Co-Founder NGP Energy Capital Management - The Godfather of Energy Private Equity
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Jun 3, 2025 Ken Hersh, co-founder of NGP Energy Capital Management and current CEO of the George W. Bush Presidential Center, shares his insights from a remarkable career in energy private equity. He discusses the transformative impact of the shale revolution and innovations in horizontal drilling. Ken reflects on the importance of strategic partnerships and his approach to navigating investment challenges, revealing how trust and collaboration can lead to success in a volatile market. Additionally, he emphasizes the need for a balanced energy landscape, integrating both fossil fuels and renewables.
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Shale Revolution by Independents
- The unconventional shale revolution was driven by independent entrepreneurs backed by private equity, not major oil companies.
- This shift transformed the U.S. from a major energy importer to a powerful exporter, reshaping geopolitics and the economy.
Hersh's Breakthrough Meeting with Rainwater
- Ken Hersh's first meeting with Richard Rainwater led to a pivotal study shaping their investment approach.
- Rainwater immediately recognized Hersh's potential, forging a partnership that built NGP Energy Capital Management.
Pivot to Backing Teams Over Assets
- NGP pivoted from betting on rising commodity prices to backing great management teams regardless of price environment.
- This strategic focus on people catalyzed the modern energy private equity investment model.