The hard truth about energy investing - straight from the frontlines

At SuperReturn North America, we heard from Daniel Strachman, Co-Founder of IMDDA Inc., who offered a candid look at how geopolitics is shaping energy markets and challenging traditional frameworks like ESG. Meanwhile, Sheryl Schwartz, Co-Founder & CIO of ALTI, discussed how private equity is evolving amidst market dislocation, AI advancements, and shifting consumer behaviours.

'Geopolitics is driving deals in energy': A candid take with Daniel Strachman, IMDDA Inc.

Key takeaways:

Geopolitical drivers in energy markets:

US energy independence is increasingly influenced by global geopolitical tensions, particularly rearmament in Eastern Europe and Asia. The Russia-Ukraine conflict and rising global tensions are forcing a reassessment of energy supply chains, pushing geopolitics to the forefront of market drivers.

Hot take on ESG:

Strachman argues that ESG is often "window dressing" and distracts from more pressing factors, such as technological innovation and pragmatic energy solutions. He advocates for focusing on technology to solve energy challenges, not ideological frameworks.

Energy independence vs. global supply:

While the US strives for energy independence, the reality is that global energy supply chains are highly intertwined, and political shifts can disrupt these relationships.

'Private equity thrives in dislocation': Sheryl Schwartz on market shifts and new opportunities

Key takeaways:

Market dislocation:

Private equity thrives during periods of market dislocation, especially in navigating evolving retail markets and emerging consumer trends. The focus is on finding opportunities that leverage economic dislocation for strategic gains, while also embracing AI to drive operational efficiency.

Adapting to evolving regulations:

Sheryl highlights the role of changing regulatory environments and the increasing focus on transparency and ESG within private equity investments. As consumer scrutiny intensifies, firms must adjust their strategies to maintain both financial returns and ethical credibility.

AI as a key investment driver:

AI is transforming private equity, offering new ways to optimise portfolios, uncover emerging opportunities, and automate processes to maximise investment potential.