The world has been paying close attention to the prices of oil and gas since the conflict in the Middle East started, and rightly so considering the impact it has on inflation and economic stability. For investors, this volatility is a clear reminder of the fragility of global energy systems and the need to mitigate energy disruption within infrastructure portfolios. One of the most effective ways to achieve this is through investing in the energy transition.
The energy transition should not be viewed solely as a thematic allocation. When aligned with a disciplined approach to value creation, it can materially enhance resilience and enhance return targets, delivering clear economic, environmental and social benefits.
That being said, LPs should not take for granted that every GP takes a fully integrated approach in connecting the energy transition to other considerations like resilience. LPs should use this situation to investigate whether managers are genuinely embedd
