ESG & Investing
Private Markets Emerge as Major Force in Energy Transition Bets
- BNEF says private market investors are key to the transition
- Public markets steer far more funds to fossil-fuel companies
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Private markets are emerging as a major force in energy-transition investing, while the much larger public markets are more receptive to fossil-fuel holdings, according to research from BloombergNEF.
In fact, all forms of alternative asset management tracked by BNEF —- spanning private equity, to private debt, real estate and infrastructure — are more exposed to low-carbon energy assets than to fossil fuels. Of the $487 billion of alternative assets analyzed, about 70% is in infrastructure funds that finance everything from wind farms to charging networks, BNEF said in a report published on Friday.