Tailwater Capital LLC, an energy-focused private equity firm, announced the closing of its third fund at $650 million.

Since launching in 2013, Dallas-based Tailwater has raised more than $1.4 billion across three funds, Tailwater Energy Fund I and Tailwater E&P Opportunity Fund.

The recently closed Tailwater Energy Fund II LP looks to invest across the midstream value chain, specifically with regards to infrastructure, which Tailwater managing partner Jason Downie believes there is an "acute need."

Launched in early 2014 with a target of $400 million, Fund II had its final close on Dec. 5. The announcement comes as

Capstone Partners LP served as the placement agent for the third fund, while Weil Gotshal & Manges LLC provided legal counsel.

In June, Tailwater helped lead the merger of portfolio company TexStar Midstream and South Cross Energy.

PE-backed energy deals have proliferated in 2014. First Reserve has invested in Hoover Container Solutions, after closing a $2.5 billion energy fund in July.

Littlejohn & Co. recently acquired PSC Industrial Holdings Corp., amaintenance provider to energy infrastructure companies. The financial sponsor is currently investing out of  Littlejohn Fund V LP, which closed a $2 billion fund in July.

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