Baupost, Elliott Bet Big on Private Equity’s Aging Energy Assets
- Hedge funds are among buyers of energy continuation vehicles
- Opportunistic investors picking up oil assets at a discount
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A booming market to inject fresh money into hard-to-sell energy assets owned by private equity firms is drawing interest from hedge funds and other investors, leading to big wins and steep losses.
Oil and gas and other energy assets snapped up over the past decade are increasingly being rolled into so-called continuation funds, backed by opportunistic investors such as Baupost Group and Elliott Investment Management — with volatile commodity prices, ESG concerns and shrinking asset values making it harder to sell aging investments.