Matt Gallagher, a third-generation oil entrepreneur with extensive experience in the energy sector, has recently discovered the world of family offices. Greenlake Energy Ventures, the oil producer he founded, is now backed by NGP Energy Capital Management.
These companies that manage the assets of ultra-wealthy families, once uncommon in the U.S. oil industry, invest in shale due to its more stable returns. Their presence is increasing as private capital has moved towards greener investments. According to the financial services firm Stephens, family offices have invested around 15 billion dollars in U.S. shale.
Not only are giants like Carlos Slim and George Soros involved, but also lesser-known dynasties like the Haslams and the Pears are providing capital to the sector. Soros's family office, for example, has invested millions in energy companies like Magnolia Oil & Gas and Hess Midstream in the last quarter. This growing interest is reflected in transactions like the acquisition of shares in Talos Energy.
The investment from these entities can be crucial in keeping U.S. drilling companies competitive globally. As shale production growth slows and factors like geopolitical uncertainty and tariff threats affect oil prices, family offices see profit margin opportunities in this sector.
Companies like HF Capital, associated with the Haslam dynasty, lead investment consortia in the sector, demonstrating growing interest among wealthy families. These investments are expected to continue growing, with numerous family offices interested in financing operations and acquisitions in the energy sector.