(WO) – Breakwall Capital LP and Vitol have closed Valor Upstream Credit Partners II (VCP II), a new energy-focused credit fund aimed at providing structured financing to North American upstream oil and gas companies.
The new fund builds on the firms’ previous partnership, Valor Upstream Credit Partners, which deployed more than $1 billion in capital over a little more than two years. VCP II will follow a similar strategy, targeting event-driven financing opportunities across the upstream sector, including debt refinancing, acquisition financing and development capital.
Managed by Breakwall, the fund is designed to provide flexible capital solutions to operators seeking to expand asset bases, optimize balance sheets or fund development programs. The partnership marks the third energy-focused credit initiative between Breakwall and Vitol, following earlier upstream and mining-focused funds.
Company executives said demand for structured capital solutions in the upstream sector remains strong, particularly as operators continue to pursue consolidation and portfolio optimization across North America. The new fund is expected to support conventional upstream companies as well as energy-adjacent businesses through tailored credit investments.
Vinson & Elkins served as legal counsel to Vitol, while Latham & Watkins advised Breakwall on the formation of the fund.
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