The market’s notable uptick in MLP-to-MLP M&A activity, often preceded by an acquisition of the target MLP’s general partner, follows a trend we recently identified.

At least five MLP M&A transactions have been announced this month that exhibit some of the key trends we identified in our recent webcast, Master Limited Partnerships: M&A and A&D, and our Client Alert. These trends include consolidation, diversification and the purchase of the MLP’s general partner as a first step toward acquiring the underlying MLP. We summarize and review all five transactions in this Client Alert.

Recap: Strategic Benefits of MLP GP Buyouts -

An MLP’s acquisition of another MLP’s general partner offers the acquirer several possible strategic benefits, such as the ability to grow the incentive distributions as the target MLP grows through sponsored drop downs, potential tax advantages, the ability to control multiple MLPs in diversified sectors, limited capital contribution requirements and the ability to control the target MLP and its growth strategy.