Investing in energy will never be an easy option.
The technology is evolving constantly; capricious politicians have a nasty habit of moving the goalposts without any warning; unexpected events can do enormous environmental, financial and reputational damage. It's a sector where success depends on strong networks and specialist knowledge.
But this complexity also increases barriers to entry, enhancing potential returns. Equally, there are very few sectors that enjoy a more favourable long-term outlook; after all, global demand is only going in one direction – upwards. That's why LP appetite remains strong: almost $18 billion-worth of energy funds were closed last year, only just shy of the pre-crisis total.
In this exclusive supplement, we look at some of the ways in which GPs are looking to meet this demand – and at some of the challenges they're facing along the way.
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Investing in Energy Handbook 2012