Why Private Equity Has Its Eyes on Midstream Assets : vimars

Why Private Equity Has Its Eyes on Midstream Assets


Why Private Equity Has Its Eyes on Midstream Assets
As energy stocks rebound, the
AMLP seeks investment results that correspond generally to the price and yield performance of its underlying index, the Alerian MLP Infrastructure Index. The index is comprised of energy infrastructure MLPs that earn a majority of their cash flow from the transportation, storage, and processing of energy commodities.
Adding to the allure of AMLP are rising prospects for private equity interest in midstream energy assets.
“At various times in recent years, private equity acquisitions in midstream have served as catalysts for the space by highlighting the value of fee-based energy infrastructure assets and providing validation for the midstream business model,” says Alerian analyst Stacey Morris. “Activity understandably slowed in 2020 amid the volatile macro environment. Could a more stable energy landscape lead to more examples of private equity investment in midstream in 2021? With a few transactions announced already this year, it certainly seems possible.”

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