Family offices piled into oil after capital dried up. The recent rally has made for big gains
Why it matters: Family offices reaped significant gains from oil investments after private equity exited due to ESG concerns.
- Family offices invested heavily in oil and gas, capitalizing on the void left by private equity firms.
- ESG pressures were a primary factor in private equity investors withdrawing capital from the oil and gas sector.
- Recent oil price rallies have led to substantial profits for the family offices that invested when capital was scarce.
Ultra-wealthy family offices stepped in to fill the funding gap in oil and gas after ESG pressures pushed private equity investors out, according to CNBC. This strategic move has resulted in significant gains for these family offices following the recent rally in oil prices.
