During the last downturn, Private Equity played an instrumental role in financing small/ mid cap companies in a period when access to finance was hugely reduced. With many still yet to exit those initial investments, and in the current market (hot on the heels of the last downturn), does PE still have a role to play in the oil & gas industry?
• To what extent has the PE model changed and moved away from IPOs with a focus instead on running the funds long and collecting returns?
• Are PE players’ longer investment cycles sustainable?
• Is there actually an increased role for PE – can they stimulate financing?
• Whilst the equity markets may currently be closed, once back to stability, which sharp PE players will be able to provide financing?
• Will private equity players have the appetite to invest in companies focused on exploration or those with declining production profiles?