Through the booms and the busts of the US energy sector, Houston has always remained a key center for trading. The city has long been home to some of the key players in the energy trading sector and that field of players is expanding by one as Magnetar Capital plans to set up an office in "The Energy Capital of the World."
The move by Illinois-based Magnetar to expand its energy franchise takes place at a time when Houston's importance in global energy markets is only expected to grow. A recent forecast from PIRA Energy sees the US exporting more crude oil than most OPEC countries by 2020.
“Magnetar is establishing a Houston office to manage the firm’s growing investment activities in the energy sector,” said COO Ernie Rogers. “We believe this infrastructure expansion will nicely complement our existing footprint, while also adding value for our clients and energy sector relationships.”
Magnetar’s presence as an investor in North America’s energy sector dates back to 2005, and today Magnetar manages some $4 billion in energy investments. Magnetar’s team brings extensive industry and investment experience to the table, making the firm well-positioned to strive for consistent returns over the long-haul across all energy sub-sectors and asset classes. The firm sees the energy sector as an attractive opportunity, driven by rapidly diversifying sources of energy supply. Adam Daley has been tapped to lead Magnetar’s Houston office.
“For more than 10 years, we have actively invested in the North American energy markets,” said partner Eric Scheyer, who leads Magnetar’s energy segment. “The opening of our new Houston office is a natural next step for our energy business given our extensive network across the upstream, midstream, downstream and energy services sectors.”
Across all products and sectors, Magnetar manages approximately $13.7 billion, making the company a leader among multi-strategy and multi-product alternative investment managers.
The firm puts money to work across public and private markets, geographies and company structures. In addition to its Evanston, Ill., headquarters, Magnetar has offices in New York, London, Minneapolis and now Houston.