ESG & Investing
Banks Shying Away From Fossil Fuels Bolster Private Credit Deals
- Banks in Europe lead retreat away from oil and gas clients
- Trend is expected to pick up amid tighter climate regulations
The value of private credit deals in the oil and gas industry topped $9 billion in the 24 months through 2023.
Source: BloombergThis article is for subscribers only.
Private credit managers are doing significantly more fossil-fuel deals now than just a few years ago, as they step into a void left by banks exiting assets they worry pose too big a climate risk.
The value of private credit deals in the oil and gas industry topped $9 billion in the 24 months through 2023, up from $450 million arranged in the preceding two years, according to data provided by Preqin, an analytics company that tracks the alternative investment industry. That’s based on the limited pool of deals reported publicly or disclosed directly to Preqin.