USD Partners Bundle
Who Owns USD Partners LP?
The ownership structure of a company is key to its strategy and operations. For USD Partners LP, a major ownership change happened in late 2023 when it was delisted from the NYSE and privatized by its sponsor, USD Group LLC.
This privatization marked a significant shift, leading to the announced sale of its last operating asset in April 2025, suggesting a potential wind-down. Understanding this evolution is crucial for grasping the company's path forward.
USD Partners LP was established in 2014 by US Development Group LLC (USD) through its subsidiary USD Group LLC. Its focus was on energy-related rail terminals and midstream infrastructure across North America. The company aimed to facilitate the transport of crude oil, biofuels, and other energy products. Initially, it operated as a master limited partnership (MLP), providing fee-based infrastructure and logistics. A detailed look at its market position can be found in the USD Partners PESTEL Analysis.
Who Founded USD Partners?
USD Partners LP was established on June 5, 2014, as a master limited partnership focused on growth, initiated by US Development Group LLC (USD). Its formation was spearheaded by Michael R. Curry, with USD Group LLC (USDG), a subsidiary of USD, playing a pivotal role in its structure and initial ownership.
| Founding Date | June 5, 2014 |
| Founder | Michael R. Curry |
| Initial Sponsor | US Development Group LLC (USD) |
| Initial General Partner Interest | Approx. 2.0% held by USD Partners GP LLC |
| IPO Unit Distribution (October 2014) | USDG received 1,093,545 common units and 10,463,545 subordinated units |
| Key Employee Unit Grant (August 2014) | 250,000 Class A units |
| Current Ownership of USD Group LLC | Employees, Energy Capital Partners, and Goldman Sachs |
Founding Entity
USD Partners LP was formed by US Development Group LLC (USD), a key entity in its establishment.
Initial Structure
At its inception, USDG held all limited partner interests, alongside a general partner interest through a subsidiary.
IPO Allocation
Following its Initial Public Offering, USDG received a significant allocation of common and subordinated units.
Employee Participation
Key employees were granted Class A units, representing limited partner interests, shortly after the company's formation.
Sponsor Ownership
The direct sponsor, USD Group LLC, is currently owned by its employees, Energy Capital Partners, and Goldman Sachs.
Control Dynamics
This initial distribution ensured that strategic direction remained with the general partner, managed by USDG.
The initial ownership structure of USD Partners LP was designed to maintain strategic control with the general partner, USDG, even as public unitholders gained participation through the IPO. This setup ensured that the entity's growth trajectory and operational decisions were guided by the sponsor's vision. Understanding this early distribution of interests is key to grasping the company's foundational ownership dynamics and who controls USD Partners.
Early Ownership Breakdown
The initial ownership of USD Partners LP was concentrated, with the sponsor, USDG, holding a significant stake. This structure influenced the company's early strategic decisions and operational management.
- USD Group LLC (USDG) acted as the primary sponsor.
- USDG's subsidiary, USD Partners GP LLC, held the general partner interest.
- Key employees received limited partner interests.
- The structure aimed to balance public participation with sponsor control.
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How Has USD Partners’s Ownership Changed Over Time?
The ownership of USD Partners LP has undergone significant transformations since its NYSE debut in 2014. Initially, its sponsor and public unitholders formed the core ownership. Key events, such as the acquisition of Hardisty South terminal assets in 2022, reshaped the stakes held by its sponsor, USD Group LLC.
| Ownership Entity | Stake Percentage (as of late 2023/early 2024) | Notes |
|---|---|---|
| USD Group LLC (via US Development Group LLC) | Approximately 52% (initially) | Indirectly controls the majority of common units and the general partner interest. |
| Public Unitholders | Negligible (post-delisting) | Minimal float on OTC markets. |
| Institutional Investors | 0.00% | As of July 2025, institutional holdings are minimal. |
| Mutual Funds | 0.02% | As of July 2025, mutual fund ownership is very low. |
Following its delisting from the NYSE in November 2023 due to market capitalization falling below the required threshold, USD Partners LP transitioned to trading on the OTC Pink Market. This shift significantly altered its ownership landscape, with institutional investors holding a negligible 0.00% and mutual funds holding a mere 0.02% as of July 2025. The ultimate control rests with US Development Group LLC (USD), which, through its 100% ownership of USD Group LLC, holds the majority of common units and the general partner interest, effectively making USD Partners LP a privately controlled entity. Understanding this evolution is crucial for grasping the current Mission, Vision & Core Values of USD Partners and its strategic direction.
Key Ownership Shifts
The ownership structure of USD Partners LP has been significantly influenced by strategic asset acquisitions and market performance.
- Acquisition of Hardisty South terminal assets in March 2022.
- Exchange of USDG's economic general partner interest for a non-economic one.
- Elimination of Incentive Distribution Rights (IDRs).
- Delisting from NYSE in November 2023 and subsequent trading on OTC Pink Market.
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Who Sits on USD Partners’s Board?
Following its privatization in late 2023, the board of directors for USD Partners LP, now wholly owned by USD Group LLC, primarily represents the interests of its sole owner. Key executives, including Daniel K. Borgen, who also serves as CEO of USD Group LLC, oversee the company's operations and strategic direction.
| Role | Name | Affiliation |
|---|---|---|
| Chairman, CEO, President | Daniel K. Borgen | USD Group LLC |
| Board Member | [Name of other key executive/owner representative] | USD Group LLC |
| Board Member | [Name of other key executive/owner representative] | USD Group LLC |
Prior to its delisting, the governance of USD Partners LP, structured as a master limited partnership (MLP), was managed by its general partner, USD Partners GP LLC, a subsidiary of USD Group LLC. The board of directors of the general partner held the responsibility for overseeing the Partnership's affairs. While independent directors were part of committees, such as the Conflicts Committee that approved the Hardisty South acquisition in 2022, ultimate control rested with the sponsor. Daniel K. Borgen's roles as Chairman, CEO, and President of both USD Group LLC and previously USD Partners LP highlight the direct influence of USD Group LLC. After the privatization in late 2023 and the sale of its final asset in April 2025, the formal public company board structure with independent oversight is no longer applicable. The current board's function is to represent the interests of USD Group LLC, the sole owner, and its executive leadership, including Mr. Borgen, who are managing the company's ongoing processes. Understanding Brief History of USD Partners provides context to this ownership shift.
USD Partners Ownership and Control
USD Partners LP is now a privately held entity, with USD Group LLC being the sole owner. This means that USD Group LLC, and by extension its key executives, hold complete control over the company's decisions and future direction. The ownership structure has shifted significantly from its public trading days.
- USD Group LLC is the primary owner of USD Partners LP.
- Daniel K. Borgen holds significant leadership positions within both entities.
- The company transitioned from public to private ownership in late 2023.
- The sale of its last asset in April 2025 finalized its operational transition.
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What Recent Changes Have Shaped USD Partners’s Ownership Landscape?
Recent years have brought significant transformations to the ownership and operational landscape of USD Partners LP. These shifts have fundamentally altered its public trading status and strategic direction.
| Key Event | Date | Impact on Ownership |
| Acquisition of Hardisty South terminal assets from USD Group LLC | March 2022 | USDG retained approximately 52% of common units; IDRs eliminated; USDG's GP interest became non-economic. |
| Delisting from NYSE | November 16, 2023 | Common units began trading on the OTC Pink Market; effectively privatized under USD Group LLC. |
| Announcement of Hardisty Rail Terminal Sale | January 21, 2025 | Sale completion by mid-April 2025; driven by lender obligations. |
| Expected Termination of Credit Facility and Partnership Wind-down | Post-April 2025 | Indicates a move towards dissolution or significant restructuring. |
The period between 2022 and 2025 marked a profound restructuring for USD Partners LP. A key transaction in March 2022 involved the acquisition of Hardisty South terminal assets from USD Group LLC. This deal simplified the company's financial architecture by eliminating incentive distribution rights (IDRs) and converting USD Group LLC's economic general partner interest into a non-economic one. Following this, USD Group LLC maintained a substantial ownership stake, holding approximately 52% of the common units, aiming to better align interests with the sponsor. This period also saw the company's common units delisted from the New York Stock Exchange on November 16, 2023, due to failing to meet minimum market capitalization requirements. Consequently, trading shifted to the OTC Pink Market, effectively placing the company under the full control of USD Group LLC. Further significant changes were announced in early 2025, with the company stating its intention to sell its final operating asset, the Hardisty Rail Terminal, by mid-April 2025. This divestment, a requirement under a forbearance agreement with lenders, is anticipated to lead to the termination of its revolving credit facility and the Partnership's subsequent wind-down or dissolution. This trajectory reflects broader industry consolidation and the challenges faced by smaller master limited partnerships in navigating public market requirements.
Ownership Consolidation
The acquisition of Hardisty South assets and subsequent delisting highlight a trend towards ownership consolidation. USD Group LLC's increased control signifies a shift away from broad public ownership.
Strategic Divestment and Dissolution
The planned sale of the Hardisty Rail Terminal and the potential wind-down of the Partnership indicate a strategic pivot. This move is driven by financial obligations and a changing market environment.
Impact of Market Conditions
The delisting from the NYSE underscores the pressures smaller entities face in maintaining public market compliance. This is a common challenge in the current economic climate for many MLPs.
Privatization Trend
The effective privatization of the company following its delisting suggests a move away from public scrutiny. This allows for more direct control by its primary stakeholder, USD Group LLC.
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