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Aubrey McClendon – His Connection to the Direct Investment Industry

The shale innovator first made headlines on The DI Wire in December when it was learned that Nicholas Schorsch sought to enter the oil and gas business. AR Capital, LLC, Schorsch’s holding company, formed a new company American Energy Capital Partners, L.P, which registered a $2 billion oil and gas offering, with the SEC. According to filings, that offering will be managed by a McClendon entity.

The SEC has yet to declare the registration effective.

ARC is not the only direct investment sponsor with ties to McClendon. Franklin Square Capital Partner’s, FS Investment Corporation II (FSIC II) has invested in two of his entities.

American Energy – Utica, LLC (AEU), is a portfolio holding of FSIC II. The non-traded BDC invested just over $100 million in AEU debt financing in late 2013. 

In October of that year, AEU announced the successful raise of about $1.7 billion in equity and debt financing for the purpose of developing Utica shale leasehold positions of approximately 105,000 net acres. GSO Capital Partners, the sub-adviser to Franklin Square Capital Partners investment offerings, was the lead debt investor in this round.

FSIC II additionally holds an equity interest in American Energy Ohio Holdings, LLC, also a McClendon entity. As of December 31, 2013, FSIC II owned over 6.7 million shares, valued $1 per share. This is a non-income producing asset for the non-traded BDC’s portfolio.

American Energy – Utica, LLC and American Energy Ohio Holdings, LLC, are both affiliates of American Energy Partners, LP, McClendon’s new venture formed in April of 2013.