European family offices eye oil and gas as private equity pulls back

Author Marcus Baram

Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.

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Feb 27, 2024

10 months ago

Family offices in Europe are increasing their investments in oil and gas amid a drop-off in activity from private equity in recent years.

Keith Behrens, head of the energy group at Stephens investment bank, told Citywire that he raised $90 million from a family office for energy deals in 2022 and closed two deals for $165 million in 2023.

In addition, London-based Pears Partnership Capital — an adviser to the Pears family, which has tended to invest in real estate — bought oil and gas interests in the Delaware Basin.

The attraction of the traditional energy sector is partly due to low valuations, with oil trading at close to $70 a barrel. “This leads to lower cash in cash flow multiples, and families understand that thesis,” Behrens said.

Though the momentum for green energy keeps building, the need for oil and gas will last for some time, and family offices recognize that “there will be a continued demand in the next several decades.”

Author Marcus Baram

Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.