CNBC reported:
Philanthropist and billionaire private equity professional
David Rubenstein has told CNBC that oil prices will bounce back over
time and will make carbon-related energy assets one the best additions
to any investor's portfolio.
"In time (oil) prices will come back, in time demand will catch up with
supply, and in time I do believe that carbon-related energy will turn
out to be one of the best investments in the world," he told CNBC
Tuesday.
It just so happens Carlyle had a carbon related energy asset
ready to go public on Thursday, August 6th..
Philly.com reported:
Three years after a brush with
extinction, the former Sunoco refinery in South Philadelphia has
increased dramatically in value under new owners and could be worth more
than $1 billion.
The private-equity firm Carlyle Group, which rescued the refinery in
2012 in a joint venture with Sunoco, on Thursday is launching an initial
public offering of Philadelphia Energy Solutions Inc. on the New York
Stock Exchange. The $250 million IPO would value the underlying refinery
enterprise at $1.3 billion, if PES shares launch at $16.50.
Investors
did not buy Rubenstein's sales talk as Carlyle
postponed its PES IPO, calling into question the Carlyle Group's reputation for
investment timing. .
Oil majors and U.S. shale producers have been hit hard by a dramatic fall in the price of oil since mid-June last year. Brent crude and WTI have recently dipped back below the $50 a barrel level after a brief rally in the second quarter of 2015.
Throughout this period, Rubenstein has maintained
his optimism, however, and told CNBC that he was "finding assets that
are now for sale at much lower prices."
Wolf Street reported:
A few weeks ago, Fitch Ratings
raised its high-yield default outlook for 2015 from a range of 1.5%-2%
to a range of 2.5%-3%. For energy companies, it expected the default
rate to jump to “the 6%-7% range.” The overall default rate would
increase further in 2016.
Rubenstein didn't clarify Carlyle's preferred method for gaining control over
ever declining carbon related assets. Watch to see how many
Carlyle buys straight up with equity and how many come via a back door debt default.
