PE at precipice of elevated activity in the distressed energy sector?
February 25, 2016
Warburg Pincus has agreed to invest up to $500 million in oil & gas exploration and production startup RimRock, marking yet another large commitment to the sector for the firm after backing Terra Energy Partners two weeks ago.
The recent deals may signal the precipice of elevated PE activity in the distressed energy sector. As the oil supply glut has continually depressed prices per barrel, PE firms have raised ever-increasing sums for oil & gas-focused investment vehicles. According to the PitchBook Platform, GPs raised $33.7 billion for oil & gas funds in 2015, a 94% increase from three years earlier.
Click here to see the largest 2015 vintage oil & gas funds raised by PE firms, the amounts of which may surprise you. PitchBook Platform users can access the full data here.