Funds Defy Markdown with HALO Energy Bets, Goldman Says Markets Reward Strategy
Brookfield Asset Management, Eurazeo, Tikehau Capital and Allianz Global Investors have avoided private market markdowns through heavy-asset, low obsolescence (HALO) energy-transition investments. Goldman Sachs reports markets are rewarding HALO while AI-driven data center demand and Iran war–related energy security concerns fuel a resurgence in capital-intensive clean energy assets.
1. HALO Strategy Shields Funds from Markdowns
Private funds including Brookfield, Eurazeo, Tikehau and Allianz Global Investors are employing heavy-asset, low obsolescence investments in energy-transition projects to maintain valuations and avoid markdowns observed in software-focused capital. The theme has proven resilient even as private credit markets face broader sell-offs.
2. Brookfield and Eurazeo Highlight Robust Performance
Brookfield’s energy group COO Natalie Adomait reports performance stronger than ever, while Eurazeo’s head of sustainability Sophie Flak sees stable fund inflows and no redemption pressure for transitional energy assets. Both cite hard asset backing and long-term contracts as key drivers.
3. AI and Geopolitical Drivers Boost Demand
Growth in AI data centers is revitalizing capital-intensive clean energy projects, and tensions from the Iran conflict have accelerated energy-security investment. These factors are converging to enhance the competitive moat of heavy-asset energy infrastructure.
4. Private Markets' Edge in Energy Transition
KKR and Allianz Global Investors emphasize that private capital’s ability to finance new technologies without public market volatility gives it a distinct advantage. Goldman Sachs analysts note that markets are now rewarding the HALO investment strategy.