The world’s private equity funds, with a cash pile of around $1 trillion, are stepping up their interest in the oil and gas industry, with almost a half expecting to buy assets in the sector over the next year, a survey showed on Tuesday.
Funds’ appetite for investments in the sector fell sharply after the start of the oil price route two years ago. But recent signs of a rebound, coupled with abundant assets around the world, are turning the tide, advisory firm EY said in a survey of 100 private equity (PE) firms.
Around 43 percent of the firms said they were planning acquisitions by the first half of 2017 and 25 percent before the end of the year.
“Activity will pick up at the back end of the year but people are still cautious,” Andy Brogan, EY Global Oil & Gas Transactions Leader told Reuters.
“The fact that the oil price seems to be sticking is gradually making people more confident that they can make some bets.”...MORE
Tuesday, June 21, 2016
"Private equity warms up to oil deals with $1 trillion warchest: EY"
From Reuters via PE Hub: