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Great Optimism by Private Equity in the Oil and Gas Industry

  •   November 19,2014
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"There are incredible numbers of ripples that go out from the splash," the head of Black Rock's $18.8 billion Private Equity Partners said in a recent interview. "Well the energy revolution right now is the rock. The ripples are all of the things in the economy that support the energy revolution that provide all kinds of investment opportunity."

PE trusts have raised around $157 billion from 2009 to have an investment in the energy sector, as per information from Preqin. What's more is that they're trying to raise considerably more, with about $32 billion gathered through 33 fundsduring the current year.

Energy cantered PE finances that were started somewhere around 2002 and 2011 have a net returns of about 14 percent yearly as compared to 9.5 percent for the overall business by and large, as per Preqin.

Warburg Pincus, for instance, declared in the month of October that it gathered around $4 billion for new energy funding in contrast to $1 billion that it had initially looked for. Energy Capital Partners announced in the month of April that it gathered $5 billion surpassing the initial target of $3.5 billion target. Furthermore Carlyle Group is making "incredible advancement" to its objective of raising about $8 billion for two energy finances by 2015.

A report titled "Business Indicators in the Oil and Gas Industry - 2012-2013: Survey Brief", offers accurate analysis of the oil and gas industry to understand the changing market scenario and growth prospects.

"It's an unlimited opportunity set," Steenberg said.

Foley, "In commodity businesses where there's usually easy substitution, that's amazing to have that kind of difference in price per Btu," he explained. "Btu" means British thermal unit.

William Macaulay, chairman and CEO of PE energy said "The trends are in place for you to see more natural gas."

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