The Fund aims to deliver investors high yield and capital growth from investments in US subsurface energy assets containing Natural Gas and Oil.
Total Return Target of 20% p.a. of which income return target is 8% p.a. (net of fees) over 3 years.
Holds a Diversified Portfolio of Royalty ownership delivering long-life income and capital gain.
The US Energy Market is Unique
Eternal Ownership of Underground Reserves and Resources
Why Now?
A Deep and Growing Local and Global Market
Sustainable Income Generation from Royalty Assets
Low Cost, Long Duration, High Margin Assets
LEH owns, leases and invests into operating onshore energy assets in the USA:
Longreach Energy (LEH) owns sub-surface real estate. The real estate provides ownership of everything under the ground and has been separated from and sold by the surface owner who originally owned both the surface and everything that lies below. LEH’s real estate contains proven and probable reserves of Natural Gas and Oil. The USA is the only country in the world where sub-surface property is readily tradeable and can be bought and sold by individuals and corporations.
LEH has unfettered rights to access the surface level of these properties for the purpose of extracting the minerals that lie beneath and through this activity, LEH generates attractive income and capital return.
Since inception2 LEH Fund 1 has delivered a total return of 130.9%3 on called capital and is delivering an annualised income yield of 8.2%. (26 Apr 22, 331 Mar 22).
There are two key ways that LEH generates return for investors:
Longreach Energy was established in 2017 and is a partnership between Longreach Alternatives and Giant Capital Management. The firm is US focussed and contains both experienced industry, engineering and investment professionals.
Formally a Macquarie Bank energy team, the Principals each have 20+ years experience in investing and managing onshore US energy assets.
Post Macquarie Bank, the team established Giant Capital and Between 2011 and 2018, the principals completed 35 deals with 13 being onshore USA with an aggregate value of US $1.6b.
In April 2018, the team launched the Longreach Energy Strategy, seeded by a large Australian Superannuation Fund. Since inception, the team have generated a total return of 92.5% on called capital and the strategy is delivering an annualised income yield of 7.9 %1
The team has a deep pipeline of investable assets in which to allocate, including several exclusive options over unique and attractive opportunities to provide swift deployment of new capital.
Longreach Energy (LEH) owns sub-surface real estate. The real estate provides ownership of everything beneath the ground and is separated from and sold by the surface owner who originally owned both the surface and everything that lies below.
As economies transition towards a future global energy mix increasingly powered by renewable energy, natural gas offers the most sustainable bridge to greener technologies. The majority of our investments are in natural gas reserves, which is viewed as the cleanest hydrocarbon and can be integrated with renewables to replace reliance on coal and oil. We also are exploring investment opportunities in a wider mix of energy sources, including renewable energy.
Longreach Energy has AUD$788 million assets under management as at 31 March 2022.
Andrew has extensive principal investment experience in global upstream gas and oil, gained during a career which has seen him co-found and lead the London office for the gas and oil investment division of Macquarie Bank.
He has particular expertise in transaction execution, financial modelling and structuring investments as well as identifying attractive projects and evaluating the commercial potential of assets.
Andrew and Thomas have been working together since 2005.
Thomas is a highly respected and experienced petroleum engineer and gas and oil evaluation specialist. He is particularly skilled in analysing and evaluating all technical aspects associated with gas and oil production, turning sub-surface data into cogent cash flow data for dependable, repeatable company valuation.
Thomas and Andrew have been working together since 2005.
Leading Longreach Energy’s US land services, Rita has over four decades of oil and gas industry experience. Beginning in the late 70’s, she has worked directly for several successful energy companies including Jack Kelley Oil, Phillips Petroleum, Brighton Energy, Primary Natural Resources and Magnolia Petroleum LLC. Her experience includes land management, such as specialising in coordinating acquisitions and divestitures, supervising land work, managing field brokers, company growth & development.
You should read the PDS, TMD (if applicable) or any Investment Memorandum (or other offer documents) related to this product before making an investment decision. These documents (if available) can be found at https://longreachenergy.com/, or if this is a "wholesale investor only" investment, can be viewed by contacting the Product Issuer identified on the aforementioned website.
This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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