Investing in alternatives has the potential to offer portfolio diversification, tax-advantages, improvement of risk and return profile, or potentially sustained income. Private oil and gas alternative investments are one asset class that accredited investors invest in that can – depending on the structure and the outcome – offer some or all of the above. There are important characteristics for investors to look for when analyzing alternative investments in the energy industry.
The U.S. is a global leader in the production of oil and gas, and the growth of the industry has created opportunities for investors seeking alternative investments. Oil and gas investments can provide strong ROI potential, long-term passive income, and a hedge against inflation.