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https://ieefa.org/blackstone-private-equity-arm-to-stop-investing-in-oil-and-gas-projects/
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IEEFA February 23, 2022 Read More → Blackstone private equity arm to stop investing in oil and gas projects TwitterLinkedInEmailShare Bloomberg ($):
After watching big banks curtail lending and asset managers pare bets, fossil fuel producers are now losing access to some of Wall Street’s deepest pockets.
Blackstone Inc., once a major player in shale patches, is telling clients its private equity arm will no longer invest in the exploration and production of oil and gas, according to people with knowledge of the talks. The firm’s next energy fund won’t back those upstream investments — a first for the strategy. Blackstone’s credit arm is swearing them off too.
The pledge by the world’s largest alternative asset manager comes after its energy returns have see-sawed and culminates a years-long retreat by the industry from the oil patch after hefty losses for some players. Apollo Global Management Inc. has also been pulling back, and recently told prospective backers its next buyout fund won’t make fossil-fuel investments. Long-time energy investors including Riverstone Holdings are among others that have shifted focus.
At Blackstone, the view in the executive suite has hardened: The world will rely less on extracting hydrocarbons from the ground for energy needs. Though its energy private equity arm hasn’t made a new oil and gas investment since 2017, the formal prohibition is new, and it’s getting stitched into its rules. Since that year, buyout firms have slashed their annual spending on U.S.-focused energy and utility investments by more than 60% to $11 billion in 2021, according to data provider Preqin.
[Dawn Lim and Sabrina Willmer]
More: Blackstone Swears Off Oil-Patch Investing as Private Equity’s Retreat Widens
Posted in: Climate Risk, Energy Investment Trends, Energy Markets, Institutional Investors, Natural Gas, News, Newsletter Daily, Newsletter News Weekly, Oil industry, Permian Basin, Renewables, Russia, Texas, Transition, U.S.
https://ieefa.org/blackstone-private-equity-arm-to-stop-investing-in-oil-and-gas-projects/
You are here: Home » Subject » Climate Risk » Blackstone private equity arm to stop investing in oil and gas projects
IEEFA February 23, 2022
Read More →
Blackstone private equity arm to stop investing in oil and gas projects
TwitterLinkedInEmailShare
Bloomberg ($):
After watching big banks curtail lending and asset managers pare bets, fossil fuel producers are now losing access to some of Wall Street’s deepest pockets.
Blackstone Inc., once a major player in shale patches, is telling clients its private equity arm will no longer invest in the exploration and production of oil and gas, according to people with knowledge of the talks. The firm’s next energy fund won’t back those upstream investments — a first for the strategy. Blackstone’s credit arm is swearing them off too.
The pledge by the world’s largest alternative asset manager comes after its energy returns have see-sawed and culminates a years-long retreat by the industry from the oil patch after hefty losses for some players. Apollo Global Management Inc. has also been pulling back, and recently told prospective backers its next buyout fund won’t make fossil-fuel investments. Long-time energy investors including Riverstone Holdings are among others that have shifted focus.
At Blackstone, the view in the executive suite has hardened: The world will rely less on extracting hydrocarbons from the ground for energy needs. Though its energy private equity arm hasn’t made a new oil and gas investment since 2017, the formal prohibition is new, and it’s getting stitched into its rules. Since that year, buyout firms have slashed their annual spending on U.S.-focused energy and utility investments by more than 60% to $11 billion in 2021, according to data provider Preqin.
[Dawn Lim and Sabrina Willmer]
More: Blackstone Swears Off Oil-Patch Investing as Private Equity’s Retreat Widens
Posted in: Climate Risk, Energy Investment Trends, Energy Markets, Institutional Investors, Natural Gas, News, Newsletter Daily, Newsletter News Weekly, Oil industry, Permian Basin, Renewables, Russia, Texas, Transition, U.S.
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