Family offices have considerable interest in investing in energy when putting money into the public market, according to a new family office survey by CitiBank.
Respondents preferred to invest in technology and healthcare sectors in the coming year, with energy in third place — narrowly beating out real estate and financials, according to the study, “Global Family Office Survey Insights 2023.”
Thirty percent of family offices with assets under $500 million expressed interest in energy investments, according to the survey. The oil and gas industry has seen family offices replace some investors who have left the sector due to a variety of reasons, including qualms over fossil fuels and the cyclical nature of commodity prices.
Family offices preferred private equity and private equity funds over other investment options such as venture capital and real estate, according to the survey.
Family offices sometimes make up some of the new partners in new private equity energy funds, and have been involved in consortiums for energy investing. Family offices were part of a consortium that acquired Wyoming natural gas producer PureWest Energy for $1.84 billion cash in May.
For sustainable investing, the survey found that family offices were mostly interested in climate transition solutions, with agricultural and food security solutions a very close second.
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