"Are you a VC?"From Forbes:
"Why yes I are."
The current oil market turmoil is providing private equity firms with plenty of opportunities for capitalizing on a situation deemed as worrying by the wider US energy spectrum. Anecdotal and empirical evidence stateside points to some of the biggest PE players readying themselves to step into the breach, as banks retreat, and troubled shale players seek financing.Possibly also of interest:
Curiously enough, it follows a period of lackluster oil and gas sector returns for PE firms. As global oil benchmarks began their slide downwards over the third quarter of 2014, many of the biggest PE firms booked losses with headline valuations of their oil and gas assets taking an expected tumble in tandem.
In fact, apart from Blackstone, which started divesting energy assets in 2013 unconvinced by the prevailing premise of a three-figure crude price, few escaped unscathed from the 50% decline in oil prices since June. For instance, PE bigwigs Carlyle, Apollo Global Management and Kohlberg Kravis Roberts (KKR) filed quarterly profit declines of 68%, 79% and 94% on an annualized basis for the three months to December. Now most, including Blackstone, have got their appetite for investing in the sector back.
Everything from credit provision on lucrative terms to shale acreage share is fair game, as PE firms sense opportunities at companies unwilling to sell assets in a low market but are desperate for cash. Blackstone has set $9 billion aside for energy investment. EnCap and Warburg Pincus are sizing up the market armed with $5 billion and $4 billion in their kitty. Even, KKR – whilst bearing the scars of its Samson Resources adventure – is reported to be lining up a $3 billion oil and gas fund....MORE
Third Point's Loeb: Returns to Energy Stocks May Disappoint (XLE; XOP)
Astenbeck Capital's Andrew Hall: Oil Is Going To $65 And The Surviving Shale Plays Will Do Just Fine
The Guy Who Called the Drop In Oil Prices
Somebody Still Likes Energy: Quantum Has a $3.25 Billion Hard Cap On Latest Fund
Private Equity: Carlyle raises $1.86bn for international energy fund
