Private equity

How does private equity contribute to climate chaos?

Private equity firms are investment management companies that invest in and acquire private companies through capital raised from wealthy individuals and institutional investors, such as public pension funds and university endowments. Since they operate in the private markets, companies owned by private equity investors face less regulatory oversight than those of other financial actors, like big banks. 

A few of the largest private equity firms are KKR, The Carlyle Group, Blackstone, Brookfield, Ares Management, Apollo, TPG Capital, and Warburg Pincus.  

Private equity firms have invested over $1 trillion in energy since 2010, and thus have significantly propelled the climate crisis. Eight of the largest private equity buyout firms had 70 percent of their energy portfolios in fossil fuels in 2023. 

How can we fight against private equity?

Private Inequity

Private Inequity is a global network of academics, investors, grassroots organizers, NGOs, climate activists and frontline communities working together to get private equity firms to stop investing in projects that drive climate change, perpetuate environmental racism, violate Indigenous rights, and cause harm to workers, neighborhoods, and local economies.   

KKR

KKR is one of the largest private equity firms in the world. KKR promotes itself as a responsible corporate citizen while continuing to invest in dirty and harmful fossil fuel companies. Private Inequity is pressuring KKR to shift its energy investments to renewables and invest in real solutions that protect communities, biodiversity, and workers.

Coastal GasLink

Owned by KKR, AIMCo and TransCanada, Coastal GasLink pipeline is an LNG project that does not have free prior and informed consent (FPIC) from the Hereditary Chiefs of the Wet’suwet’en. Since KKR took ownership, there has been excessive use of force against land defenders including violent police raids. Private Inequity supports the Wet’suwet’en Hereditary Chiefs and the demands made to KKR executives to address the harms caused by the pipeline to waterways, salmon, forests, sacred historical sites and people. 

Cameron LNG

A Sempra Infrastructure asset in which KKR is an investor, Cameron LNG is a $10 billion gas liquefaction facility and export terminal located in Hackberry, Louisiana. The project sits in the  heart of one of the largest fossil fuel buildouts and has a history of environmental violations. Private Inequity is working with frontline community groups in the region voicing concerns about the facility’s impacts on the health of neighboring communities through air and water pollution. 

Photo Credit: Asya Pikovsky

Rio Grande LNG

Private equity firm Global Infrastructure Partners (GIP) has a substantial $3.5 billion investment in Rio Grande LNG, making the firm the largest investor with a minimum 46% ownership stake in the project. In January 2023, Blackrock entered a deal to acquire GIP. If built, the project is estimated to emit the equivalent emissions of 44 coal power plants every year, about 163 million tons of carbon dioxide equivalent. Would significantly degrade local fishing, shrimping and natural tourism industries putting communities’ livelihoods at risk. Future global demand for LNG is also highly uncertain. The IEA forecast that demand for gas, oil and coal will all peak before 2030, and has noted that demand for gas growth has slowed considerably, leading to concerns about a “glut of LNG.” Sinking millions of dollars into massive gas infrastructure exposes investors to financial and environmental risks. Due to these environmental, social and financial risks advocates have urged pension funds across the US to urge GIP to meet with local communities and shut down the Rio Grande LNG terminal project. You can join South Texas communities in demanding GIP cancel the Rio Grande LNG project by sending an email to GIP leadership here.  

Photo Credit: Bekah Hinojosa