How will falling oil prices affect PE energy fundraising?
December 19, 2014
Falling oil prices have ignited much discussion as to energy futures as of late. Here at PitchBook, our thoughts turn to how that may affect oil & gas PE fundraising. Perhaps lower commodity prices will lead to abundant discounts from sellers, resulting in optimistic fundraising; on the other hand, investors may be wary of committing to funds reliant on oil prices. For some context, let’s take a brief look back at energy fundraising in 2014, with the three biggest oil & gas funds to close this year.
As the third largest fund, we have KKR Energy Income & Growth Fund I at $2 billion—a fund that will focus on more unconventional oil & gas resources.
Following up at No. 2 is Encap Flatrock Midstream Fund III at $3 billion, which closed in May.
Coming in as the largest closed fund is First Reserve Fund XIII, closing just north of $3.5 billion at the end of September.
For more information on fundraising and benchmarking trends, check out our 4Q 2014 Global PE & VC Benchmarking Report here. To learn more about the data powering the report and the content above, contact us here to learn more about the PitchBook Platform.