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    Home > Chemicals Industry > International Chemical > Private investment in natural resources is expected to exceed $100 billion in 2018

    Private investment in natural resources is expected to exceed $100 billion in 2018

    • Last Update: 2023-01-01
    • Source: Internet
    • Author: User
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    According to the latest report from international private capital tracker Preqin, contrary to expectations, 2018 was another bumper year for the sector, especially natural resource investment
    .

    The global private capital space has experienced rapid growth over the past decade, with 1,733 private capital funds raising a total of $757 billion last year, down from a record $925 billion
    in 2017.

    But funds raised by unlisted funds to invest in natural resources, including oil and gas, woodland, farmland, water and mines, set a new record in 2018 and have the potential to break $100 billion
    for the first time.

    Private capital includes traditional private equity such as buyouts, venture capital and working capital funds, distressed debt and direct loans, private real estate, infrastructure and natural resources funds, and sovereign wealth and hedge funds
    .

    According to preliminary statistics, private capital investment in natural resources has reached $93 billion in 2018, and as more data is disclosed, Preqin expects that figure to rise by another 10%, and is expected to exceed $100 billion
    for the first time.

    After a dismal 2017, capital for mining and metals investment has also increased significantly compared to last year, but still represents only a fraction
    of private capital in natural resources.

    Preqin's analysis shows that energy-focused funds (which are actually only oil and gas, coal investments have dried up) accounted for almost the year's activity, as 77 funds raised $89 billion
    .
    The vast majority of these funds are for the North American oil and gas business
    .

    By comparison, only four metals and mining funds raised $2.
    5 billion
    .
    "More than half (57%) of natural resource funds exceeded their 2018 targets, indicating that the investor market still has great
    potential," Preqin said.

    According to the latest report from international private capital tracker Preqin, contrary to expectations, 2018 was another bumper year for the sector, especially natural resource investment
    .

    Private capital

    The global private capital space has experienced rapid growth over the past decade, with 1,733 private capital funds raising a total of $757 billion last year, down from a record $925 billion
    in 2017.

    But funds raised by unlisted funds to invest in natural resources, including oil and gas, woodland, farmland, water and mines, set a new record in 2018 and have the potential to break $100 billion
    for the first time.

    Private capital includes traditional private equity such as buyouts, venture capital and working capital funds, distressed debt and direct loans, private real estate, infrastructure and natural resources funds, and sovereign wealth and hedge funds
    .

    According to preliminary statistics, private capital investment in natural resources has reached $93 billion in 2018, and as more data is disclosed, Preqin expects that figure to rise by another 10%, and is expected to exceed $100 billion
    for the first time.

    After a dismal 2017, capital for mining and metals investment has also increased significantly compared to last year, but still represents only a fraction
    of private capital in natural resources.

    Preqin's analysis shows that energy-focused funds (which are actually only oil and gas, coal investments have dried up) accounted for almost the year's activity, as 77 funds raised $89 billion
    .
    The vast majority of these funds are for the North American oil and gas business
    .

    By comparison, only four metals and mining funds raised $2.
    5 billion
    .
    "More than half (57%) of natural resource funds exceeded their 2018 targets, indicating that the investor market still has great
    potential," Preqin said.

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