Energy is another sector that many private equity firms are banking on. Energy funds have been able to raise their fair share of capital. For example, White Deer Management raised $1.4 billion for White Deer Energy LP II, while a smaller firm, Houston-based Pelican Energy Partners, was able to raise $105 million for its debut fund Pelican Energy Advisors LP. Private equity giants are also chasing investments in the sector. In 2012, the Blackstone Group (NYSE: BX) raised its first fund dedicated to the energy space, while Kohlberg Kravis Roberts & Co. (NYSE: KKR) recently closed a $4 billion fund for investment in energy and infrastructure.

Energy deals will continue to gain momentum. As almost everyone calls for more energy security and less reliance on imported oil and gas, energy companies are making headway by drilling shale deposits in North America. The technology used to extract oil and gas has gotten a lot better making drilling in the U.S. less risky, which is leading to a lot more opportunity. There are deals to be made in all parts of the energy value chain as a result of the better technology.

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