We expect REIT and public infrastructure performances will improve, given undemanding valuations and our view on interest rates. We believe private infrastructure funds will perform well, and we think nuclear energy will emerge as a small but important opportunity.
It has been difficult to find a more out-of-favor sector in institutional investors’ portfolios than energy over the past five years, and with the recent spread of COVID-19 reducing demand for oil & gas, that reality appears set to continue – creating both challenges and opportunities. Amid the sector’s ongoing evolution, the energy PE investment strategy that dominated the market has become outdated, and investors that wish to capitalize on potential opportunities in this market must re-think their approach.
No. But, the game has changed and to be successful, investors should adopt a new commitment strategy.
Private equity energy fund raising is likely to hit an all-time high in 2017. In this edition of Real Asset Dynamics, we examine the trends in fund raising, commitments, and investments in energy and their implications.