Riverstone Holdings Investing In Energy and Power
Historically, investing in energy and power has been a smart move and Riverstone Holdings was able to perfect its expertise in the sector and provide solid returns to investors while helping energy businesses grow.
However, the volatility of the stock market in general since the crash of 2008 forced many investors to rethink their strategy when looking at making a play in the power and energy sector. While ever increasing gas and oil prices offered fairly solid returns their continuing move upward has made alternative energy sources more attractive and resulting in ever more volatility in the market. Of course this doesn’t mean that Riverstone and other energy investors need to jump ship or completely overhaul their investment strategies. In fact, this plays to the strengths of companies like Riverstone, which are research and an objective view of the long term viability of any energy producer they are considering partnering with.
Anyone considering in investing in the relative safe havens of oil and gas has to deal with the fact that costs for producers have risen in the wake of disasters like the BP oil spill which has led to massive penalties and more regulation. Further, an apparent overabundance of natural gas is driving down prices and making that sector less attractive to short term investors and more appealing to those who are interested in betting on the long run. Not to be outdone, renewables have their own drawbacks, with recent scandals convincing some investors that wind, solar and other green power is more smoke and mirrors rather than solid investment.
Despite these concerns the growth of the industry is undeniable and more choices in energy producing technologies should be viewed as an opportunity for prudent investors rather than simply a challenge to old tried and true investment targets of the past. Responsible companies looking to invest in power and energy will strive to maintain a varied portfolio which mixes traditional investment vehicles with cutting edge energy sources and technology.
Riverstone has always understood this and had a history of investing in power and energy by nurturing their projects rather than simply jumping in and liquidating assets and moving on. Founded in 2000 by David Leuschen and Pierre Lapeyre, Riverstone has since raise approximately $227 billion of equity capital. This long term investment strategy should continue to perform as it has for the last decade.