White River Energy Corp. of Fayetteville (OTCQB: WTRV) announced the launch of a private capital investment firm offering products such as intangible drilling cost deduction funds, 1031 exchange funds and insurance designated funds in the oil and gas industry.
White River Private Capital Management will operate as a wholly-owned subsidiary of the publicly traded energy company. The firm’s first investor product is a $50 million IDC limited partnership called White River Energy Partners I LP, the company said in a news release. Any future products will be subject to regulatory compliance.
Randy May, chair and CEO of White River Energy, said the venture is more than just an avenue for growth for the company. He said it represents a commitment to generating value for common stockholders while providing the opportunity for tax optimization and investment returns for private partners.
The company could be the only one of its kind to deploy such a public/private business model.
“Our drive has always been to innovate and adapt, and this new chapter will allow us to further solidify our promise to the market,” May said in the release.
To lead the firm, White River tapped two executives from Inland Securities Corp., which exclusively manages public and private real estate investment programs sponsored by Inland Real Estate Investment Corp. of Oak Brook, Illinois.
Colin Cosgrove was named president and CEO. During his seven years at Inland, he raised over $8 billion and held leadership titles including national sales manager and head of sales. He previously worked for Griffin Capital, Cole Real Estate Investments and Edward Jones.
Zack Holley was hired as the firm’s executive vice president and chief distribution officer. In his former role as divisional director at Inland, he led a team that achieved back-to-back record years in capital raise totaling approximately $3 billion. Before working at Inland, he was a senior vice president at Griffin Capital.
“Zack and I have a proven track record of building out sales and distribution teams focused on private products for broker-dealers and registered investment advisors,” Cosgrove said. “We feel that WRPCM is a career-defining opportunity for us to partner with Randy May and his team to take this public company to the next level.”
White River Energy’s business focuses on oil and gas exploration, production and drilling. The company has operations on about 34,000 total acres of oil and gas mineral leases in Louisiana and Mississippi.
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