By David French

(Reuters) – ArcLight Capital Partners hired Blackstone’s top oil and gas dealmakers. According to sources familiar with the matter. This is an example of a specialized buyer looking to capitalize on a peer who has abandoned the sector.

After the boom in US shale production between the 2010s and now, many of the largest private equity companies in the world such as Blackstone lost their investments in America’s oil fields. This has resulted in them reducing their return. The transition to sustainable investment, due to climate change becoming a major concern, was also a factor.

This means that the U.S. Oil and Gas sector has been left to money-focused energy managers and a few other private capital providers. These people are using less competition to negotiate deals with talent and hire new employees as oil prices rebound.

Sources say Angelo Acconcia will be joining ArcLight in spring as senior managing director. ArcLight is a private equity firm based in Boston that focuses on the energy transition and utility infrastructure.

ArcLight declined to comment on the request. Blackstone spokesperson said, “We are grateful for Angelo’s numerous contributions to our firm and wish him the very best in all his future endeavors.”

The rise in oil prices over the past 12 months has led to an increase in valuations for oil and gas assets. This allows buyout companies to dispose of long-term investments and concentrate on new areas. Blackstone was able to exit two businesses in 2021. One, it listed and sold Vine Energy (NYSE:) to Chesapeake Energy Corp for $615 million. The other was the sale of GEP Haynesville natural gas-focused to Southwestern Energy (NYSE.) Co for $1.85 Billion.

Acconcia has been the highest-ranking senior private equity executive who is energy-dedicated since Greg Beard, Apollo Global Management (NYSE 🙂 Inc) left in June 2020. After nearly a decade as the Apollo natural resource group’s leader, Acconcia joined Andros Capital Partners to invest in oil and gas.

Sources said that Acconcia, who was a Blackstone senior managing director, is currently on gardening leave. This ended Acconcia’s 17 year career as an alternative investment manager, where he had played a major role in the company’s development in energy investments.

ArcLight was founded in 2001 and has invested more than $25 billion through 113 investment in the energy industry.

It also agreed to buy for $830million, in February 2021, a 25% interest in Pipeline Company of America. This is one of the most important interstate pipeline networks in America.

It has its $7.4 billion seventh flagship fund and separate funds for renewables or energy transition. ArcLight Clean Transition Corp I, which is a blank-check acquisition vehicle that it supports, also gets its backing.