PE investors ended 2015 with what seemed like the ideal set-up for a surge in energy deals. The global oil supply glut depressed prices and left assets in danger of distress, while PE firms accumulated hefty sums of capital for energy-focused vehicles. Looking back on the first few months of 2016, however, PE shops haven’t invested as heavily as expected.
Per our recent M&A Report, financial buyers may be struggling to find the right security in bankruptcy proceedings to ensure worthwhile risk-to-reward ratios in energy deals. Despite the riskier climate for these investments, PE firms still have opportunities to deploy capital in the sector through discounted restructuring transactions and by financing the larger corporate acquirers in energy.
Here are the most active PE investors in energy since 2012 along with their deal counts (incl. add-ons):