Since 2002, Park Street has been constructing portfolios of natural resource-related assets with the goal of delivering competitive, long-term returns and important diversification benefits. We invest globally in a diversified mix of resource-oriented categories, primarily via private commingled partnerships, although co-investments and separate accounts are employed on an opportunistic basis.
Our strategy emphasizes allocations to the following sectors in order to seek an attractive blend of income production and capital appreciation:
- Oil & Natural Gas
- Other Natural Resource-Related Assets
This approach distinguishes Park Street’s portfolios from more broadly defined real asset offerings in important ways:
- Emphasis on direct exposure to the underlying resource where competitive returns may be achieved through a combination of interim cash flow and long-term capital appreciation, assuming flat or modestly increasing commodity prices.
- Preference for situations where management and operational improvements, not financial engineering, may be applied to enhance returns.
- Avoidance of investments where value realization is overly dependent on robust capital markets, such as energy/transportation infrastructure (e.g., pipelines, power plants, airports, toll roads), oil field services companies, and commercial real estate properties.
This strategy enables Park Street to provide investors with a portfolio of lower-risk assets that we believe will generate reliable current income (even during economic downturns) and the potential for enhanced returns through active asset management. We believe that our approach also preserves the important diversification benefits of hard assets, such as lower correlations with stock and bonds and increased protection against inflation.
Identifying and accessing investment opportunities in venture capital, growth equity, leveraged buyouts and other special situations.