Key Takeaways
- • Major private equity firms control 15,000 miles of pipelines, 124 GW of power generation capacity across 370 fossil fuel-powered plants, and hundreds of oil and gas fields globally, according to the Private Equity Climate Risks Consortium analysis.
- • BlackRock, GIP, Energy Capital Partners, EQT, and Kayne Anderson have all increased their fossil fuel company holdings since 2024, reversing earlier ESG commitments made in the post-pandemic period.
- • Private equity funding of energy assets reached over $1.1 trillion between 2010 and 2021, with the overwhelming majority directed toward fossil fuels rather than renewable alternatives.
- • Rising energy demand from artificial intelligence infrastructure and data centers is driving renewed private equity appetite for oil, gas, and power infrastructure investments, according to industry analysis.
- • Global private equity and venture capital investments in oil and gas transportation are on track to exceed 2024 levels in 2025, per S&P Global reporting from August 2025.
Summary
Private equity firms are significantly expanding their exposure to fossil fuel assets despite earlier environmental commitments, according to a new analysis by the Private Equity Climate Risks Consortium. The research examined the portfolios of 20 major private equity investors in global energy infrastructure, revealing substantial holdings that underscore the sector's continued reliance on carbon-intensive assets.
The consortium identified that these firms collectively own 15,000 miles of pipelines, operate 124 gigawatts of power generation capacity through 370 fossil fuel-powered plants, and hold hundreds of oil and gas fields. The analysis drew on data from PitchBook, company filings, press releases, and regulatory documents, though researchers acknowledged gaps that prevented full quantification of total fossil fuel asset holdings across the surveyed firms. Historical data from PitchBook indicates that private equity deployed more than $1.1 trillion in energy assets between 2010 and 2021, with fossil fuels representing the overwhelming majority of this capital deployment.
A pattern of portfolio expansion emerged among major players: BlackRock, GIP, Energy Capital Partners, EQT, and Kayne Anderson have all increased the number of fossil fuel companies held since 2024. This represents a reversal of the post-pandemic period when numerous financial institutions, corporations, and energy companies introduced stronger ESG standards and decarbonization targets. Many of these commitments have since been scaled back or abandoned.
The surge in private equity fossil fuel investment is being driven partly by accelerating energy demand from artificial intelligence and data center operations, which require substantial power infrastructure. Reflecting this trend, S&P Global reported in August 2025 that global private equity and venture capital investments in oil and gas transportation were tracking to exceed the prior year's levels, signaling sustained institutional appetite for hydrocarbon infrastructure despite long-term decarbonization pressures from certain governments and consumer segments.
The consortium identified that these firms collectively own 15,000 miles of pipelines, operate 124 gigawatts of power generation capacity through 370 fossil fuel-powered plants, and hold hundreds of oil and gas fields. The analysis drew on data from PitchBook, company filings, press releases, and regulatory documents, though researchers acknowledged gaps that prevented full quantification of total fossil fuel asset holdings across the surveyed firms. Historical data from PitchBook indicates that private equity deployed more than $1.1 trillion in energy assets between 2010 and 2021, with fossil fuels representing the overwhelming majority of this capital deployment.
A pattern of portfolio expansion emerged among major players: BlackRock, GIP, Energy Capital Partners, EQT, and Kayne Anderson have all increased the number of fossil fuel companies held since 2024. This represents a reversal of the post-pandemic period when numerous financial institutions, corporations, and energy companies introduced stronger ESG standards and decarbonization targets. Many of these commitments have since been scaled back or abandoned.
The surge in private equity fossil fuel investment is being driven partly by accelerating energy demand from artificial intelligence and data center operations, which require substantial power infrastructure. Reflecting this trend, S&P Global reported in August 2025 that global private equity and venture capital investments in oil and gas transportation were tracking to exceed the prior year's levels, signaling sustained institutional appetite for hydrocarbon infrastructure despite long-term decarbonization pressures from certain governments and consumer segments.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.