Semafor and PitchBook examine private equity geopolitical risks
May 7, 2026
Recent coverage from Semafor and PitchBook highlighted growing scrutiny around private equity investment in energy infrastructure operating in regions facing geopolitical instability, and the exposure of pension fund capital to those assets.
In Semafor Energy, climate and energy editor Tim McDonnell examined how the Iran war and disruptions around the Strait of Hormuz are creating new risks for retirement systems invested in private equity-backed energy infrastructure. The piece focused on assets including LNG tankers, storage terminals, and pipeline infrastructure connected to firms such as IFM, Brookfield, BlackRock, and Stonepeak.
PESP Executive Director Jim Baker told Semafor that the risks tied to shipping and energy infrastructure in the Gulf are becoming harder for investors to ignore:
“Until a couple of months ago, most people in private equity didn’t think there was a geopolitical risk in shipping LNG in and out of the Gulf. Events have proved otherwise.”
Baker also raised questions about investor transparency around these assets:
“There’s a question of whether these firms have fully communicated potential risks to their investors.”
The Semafor story also noted that some of the largest U.S. public pension funds, including CalPERS and New York State Common, have exposure to IFM infrastructure funds connected to assets operating in the region.
Separately, PitchBook reporter Jessica Hamlin examined Carlyle’s pending bid for Lukoil’s international oil and gas assets and the broader risks facing LPs investing in energy assets tied to conflict zones and sanctions-related uncertainty.
The story highlighted how pension funds and institutional investors are exposed to energy strategies pursuing deals in regions facing heightened geopolitical instability. PESP Senior Research and Campaign Coordinator Amanda Mendoza told PitchBook:
“Carlyle’s pursuit of Lukoil’s assets, particularly when they’re located in conflict zones like the Middle East, raises questions about how investments in oil and gas in volatile regions align with the asset manager’s fiduciary duty to its investors.”
Mendoza also noted the importance of LP oversight as geopolitical disruptions increasingly affect energy infrastructure and shipping routes:
“It is important for LPs to ask their GPs about their plans to ensure returns despite geopolitical disruption at energy choke points.”
Together, the stories reflect growing attention on how private equity firms and the pension systems backing them are exposed to geopolitical risks tied to fossil fuel infrastructure, LNG shipping, and global energy chokepoints.
Read the Semafor story: https://www.semafor.com/article/05/07/2026/energy-war-targets-retirement-funds
Read the PitchBook story: https://pitchbook.com/news/articles/carlyles-pending-russian-oil-gas-deal-exposes-lps-to-war-risk
