The US Energy Revolution: The role of private equity in oil and gas

During the past decade, private equity has been making investments across the entire value chain of the energy industry. The industry requires enormous amounts of capital and private equity has been capitalizing on the abundance and variety of opportunity. Because of its disaggregated nature, oil and gas offers a uniquely broad range of businesses for potential investment along the entire value chain.

The array of opportunities is matched by a full complement of exit strategies, especially IPOs via MLPs which have grown dramatically over the past few years. Private equity firms can target investment opportunities that fall along the entire risk continuum and cater to practically every risk profile, strategy and appetite.