One big deal helped boost Oklahoma into the top five among all states in the amount of private equity invested in local firms, according to recent report.
KKR & Co.'s $7.2 billion purchase of most of Tulsa-based Samson Investment Co. last year represented the bulk of the $8.7 billion in private equity funds invested in Oklahoma last year, according to estimates in a report issued last week by the Private Equity Capital Council.
The Samson deal was the year's biggest private equity takeover of a private company, and the largest ever involving an oil and gas producer, according to data compiled by Bloomberg.
A big deal
In 2010, Oklahoma did not rank among the top 20 states in private equity investment, based on the council's previous report. The financial details of a significant number of private equity transactions are not public, so the report understates the level of investment, said Bronwyn Bailey, the council's vice president of research.
“We know there are other deals out there that we don't know the value,” Bailey said. “The number of transactions is probably more correct.”
Oklahoma was home to 6 percent of all private equity investments last year, topping the level of larger and traditionally more active states like Massachusetts, Florida and Illinois, the report said. However, just 28 Oklahoma companies received private equity investments in 2011, which ranked 17th among the 20 states ranked in the study.
The Samson deal also made the congressional district that includes Tulsa the second-largest target of private-equity dollars, trailing only a district that includes parts of New York City, the report said.
A good year
Oklahoma's private equity investments in 2011 would have ranked the state seventh among all nations, just behind South Korea and just ahead of Canada, Japan and Germany, the report showed.
Private equity investment in the top three states of Texas, New York and California made up 38 percent of the U.S. total last year. Private equity firms invested more than $144 billion in 1,702 U.S. companies in 2011, the report showed.