Deals
Private Equity Firms With Energy Holdings Hit in Downdraft
- Blackstone, Apollo, Carlyle, KKR each fall by double digits
- Energy woes add stress to credit markets broadly, analyst says
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Private equity firms were hit hard by Monday’s oil price collapse as a result of their entanglements in energy through buyouts, lending and owning stakes in companies that specialize in deal-making in the sector.
Shares of alternative asset managers with exposure to energy companies tumbled as U.S. stocks plunged broadly and oil had its biggest drop in a generation. A battle for market share between Saudi Arabia and Russia is threatening to boost crude supply just as the coronavirus is spurring the first decline in demand since 2009.