With recent technological innovations America has experienced a renaissance in domestic energy production. This includes shale oil extraction techniques, deep-water drilling infrastructure, and green energy initiatives including solar and wind technology.
Energy master limited partnership programs are a way to directly participate in the energy sector. Partnerships operate for long periods of time, may feature unique tax benefits, and may generate variable income. Depending on the type of partnership, liquidity events may include: listing on a national stock exchange, sale to an institutional investor, or assets may be sold and proceeds distributed to investors.
The cost structure, liquidity, strategies, terms and features of energy partnerships are governed by a private placement memorandum. Risk and return potential vary by sponsor, offering, and overall market and economic conditions. Past performance is no guarantee of future returns.
Alternative investments are more complex than traditional investment vehicles and can have different fees and cost structures. They often invest in illiquid assets, which can make them difficult to exit and price on a regular basis. Some strategies involve leverage which can magnify gains or losses.