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The current down-cycle in the oil and gas sector has left
private equity energy investors feeling the pressure to emphasise operational
value creation, as reported by Private Equity International this week.
PEI’s Research & Analytics team have analysed whether
this has affected fundraising for closed-ended private equity vehicles
investing in infrastructure-focused companies.
In 2015, private equity funds focused on the infrastructure
market gathered $39.47 billion from the close of 51 funds. An increase of $2.69
billion on the previous year’s total suggests that fundraising in the
infrastructure market is on an up-cycle.
While the largest vehicle to close in 2015 was EnCap Energy
Capital Fund X, raising $6.5 billion to invest into the upstream oil and gas
industry in North America, the significant drop in the price of oil at the end
of last year is sure to affect where investors choose to place their capital in
Funds closing in recent months will largely be unaffected
by such a new development in the oil and gas industry. However, we are likely
to see a drop-off in fundraising for this sector over the next couple of years
as investors look to gain returns from other areas of the infrastructure
So far this year, five infrastructure-focused private
equity funds have held a final close, collecting $7.08 billion from investors. The
largest is Stonepeak Infrastructure Fund II, which gathered $3.5 billion for
North American investments in sectors such as energy,
power and renewables, transportation, utilities, water.
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