Unquote: Private equity's trepidation over European shale

The US shale gas revolution has transformed the county’s energy market, not only reducing imports but also significantly decreasing the cost of gas.This phenomenon has surely raised a few European investor eyebrows, wondering how to benefit from similar opportunities. Alice Murray investigates

Historically, private equity, unless investing from an energy-focused fund, has maintained a measured and somewhat distant relationship with the oil & gas and wider energy market. The asset class is rightfully cautious of the cyclical dangers of the energy industry and has positioned itself just outside the exploration and production (E&P) industry heart, cautiously sticking to companies that provide services, and therefore have a greater level of protection against cycles.

Will the asset class stick to the same rules when it comes to European shale gas opportunities? With a clear need for advancements in technology for safe and low impact extraction, will venture investors be vying for opportunities in the nascent sector?  MORE