Just as private equity houses are found to be ramping up their interest in the oil and gas sector, they are at the same time backing out of green energy and cleantech, worried about the possibility of a green bubble forming.
A survey by Rothstein Kass showed 24 per cent of more than 200 PE fund managers highlighting the green sector as the most likely to produce the next investment bubble.
The amount of private equity moving into the US oil and gas sector has risen dramatically over the past year, drawn by a long-term bet on rising commodity prices and heightened demand for energy infrastructure. This is according to PwC, the consultancy, which put out a report on US energy sector deals on Tuesday.
Overall, there were eight private equity-backed transactions in the first quarter of this year, representing $4.8bn, or 9 per cent of total deal value, compared to just one during the same period last year, worth $767m, the report said.
Figures from PwC