Private Equity Scoops Up Oil And Gas Assets

The 10 largest private equity funds have 80% of their energy investments in fossil fuels

According to a recent analysis from the Private Equity Stakeholder Project and Americans for Financial Reform Education Fund (AFREF), the eight largest buyout firms have put nearly as much money into coal, oil and gas as the big bank.

According to the nonprofit groups, the PE firms, which include Apollo Global Management, Blackstone Group, Brookfield Asset Management, Carlyle Group, KKR and Warbug Pincus, collectively oversee $216bn worth of fossil-fuel assets, on par with the amount of money that big banks put into fossil fuels last year. 

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Private Equity groups are becoming large financiers of fossil fuels as big banks wind down hydrocarbon investment.

Whereas banks and oil firms are accountable to their shareholders and to the public, private equity firms are only accountable to their limited partners.

Last year, BlackRock sent shockwaves through the fossil fuel sector after it vowed to double down on climate activism by backing more shareholder resolutions on climate change and social issues.

Fossil fuel financing remains dominated by four U.S. banks JPMorgan Chase, Citi, Wells Fargo, and Bank of America, who together account for one quarter of all fossil fuel financing over the last six years.

Source: OilPrice.com

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