Alternative Asset Managers Fuel US Energy Infrastructure Boom with Insurance Capital

A new wave of capital from alternative asset managers is powering the expansion of America's energy infrastructure, funding major liquefied natural gas (LNG) export terminals and pipeline networks. Firms including Apollo Global Management, Blackstone, and KKR are deploying cash from their insurance businesses, filling a critical financing need for the energy sector.

A Surge in Private Capital

This influx of investment is driven by heightened global demand for U.S. energy exports, spurred by geopolitical instability, and the growing domestic need for power to support new AI infrastructure. In 2026 alone, alternative investors have participated in transactions in the LNG and midstream sectors valued at $20.35 billion, more than double the total for all of 2024, according to data provider Infralogic.

This type of financing is a strategic fit for both parties. Energy infrastructure projects with long-term contracts offer the stable, lower-risk returns sought by insurance capital. "This is a marriage of assets that have proven over time to be generally lower risk, with capital that wants to invest for the long term in lower-risk assets with steady returns," said Rick Campbell, senior managing director at Blackstone Credit and Insurance, in a statement to Reuters.

Landmark Transactions

Nearly every major LNG project approved since 2025 has involved private capital alongside traditional lenders. This shift reflects a view of LNG facilities as long-lived infrastructure assets rather than purely commodity businesses, with sales agreements often locking in revenue for up to 20 years.

Ad

Recent major deals include:

• A $9 billion investment from Apollo to back ONEOK, including its acquisition of Midland basin assets.
• A $7 billion investment for the second phase of Sempra Infrastructure’s Port Arthur LNG facility.
• A $5.34 billion Blackstone-led investment to support power projects being developed by pipeline operator Williams.
• A $3.5 billion deal in late 2024 where EQT sold a 49% stake in a midstream joint venture to Blackstone Credit & Insurance.

Evolving Financing Structures

The nature of these investments is also evolving. While many deals fund specific, ring-fenced projects, ONEOK's recent transaction with Apollo broke new ground. The deal created a structure for Apollo to make a minority investment directly in ONEOK’s equity, providing a new model for public companies to raise significant capital without issuing shares on the public market.

"This has the potential to become an additional funding option for public companies, as you can raise equity at scale without having to go to the public markets," said Jeffrey Mensch, head of M&A structuring at Barclays, which advised ONEOK on the transaction, according to Reuters. For project developers, the trend offers a welcome expansion of funding sources. As Daniel Vogel, a partner at Apollo, told Reuters, "There is ample capital out there, so for project developers, it’s about having diversification of sources."