Banks Shying Away From Fossil Fuel Spur Private Credit Deals (1)

Private credit managers are doing significantly more fossil-fuel deals now than just a few years ago, as they step into a void left by banks exiting assets they worry pose too big a climate risk.

The value of private credit deals in the oil and gas industry topped $9 billion in the 24 months through 2023, up from $450 million arranged in the preceding two years, according to data provided by Preqin, an analytics company that tracks the alternative investment industry. That’s based on the limited pool of deals reported publicly or disclosed directly to Preqin.

The figures offer ...