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In brief: Blackstone swears off upstream investments

The world’s largest alternatives manager said future energy strategies will not invest in oil and gas exploration or production.

Blackstone will not invest in the exploration and production of oil and gas for the firm’s next energy fund. A report from Bloomberg News said that Blackstone, the world’s largest alternative assets manager, has sworn off investing in the upstream part of the oil and gas production chain from future equity and debt strategies.

It is important to note that the commitment not to invest from future funds says nothing about the $4.2 billion Blackstone closed on last year for its Energy Partners III fund. A Blackstone spokesperson declined to rule out future upstream investments from this strategy, New Private Markets reported last year.

The report found that while the largest private equity backers of the oil and gas industry are facing pressure to reduce exposure to the sector, strategies about when and how to do so are mixed.