Neuberger Berman’s Energy Transition and Infrastructure Strategy: Insights from Doug Rachlin
On a recent episode of “Squawk on the Street,” Neuberger Berman’s Senior Portfolio Manager, Doug Rachlin, shared his perspectives on the opportunity set for the firm’s energy transition and infrastructure strategy. Rachlin, who leads the firm’s Global Infrastructure Equities team, provided insights into the firm’s approach to investing in this space, focusing on the intersection of profitability and sustainability.
Profit-Driven Approach to Energy Transition
Rachlin began by emphasizing Neuberger Berman’s profit-focused investment philosophy. He explained that the firm seeks to invest in companies that not only contribute to the energy transition but also have solid business models and attractive financials. “We are not just looking for companies that are green. We’re looking for companies that are profitable,” Rachlin stated.
Investing in Renewable Energy and Infrastructure
Rachlin then delved into the specific sectors that Neuberger Berman is focusing on within the energy transition and infrastructure space. He highlighted renewable energy and infrastructure as two key areas of opportunity. “Renewables are becoming increasingly cost-competitive with traditional energy sources,” Rachlin noted. “And infrastructure is a critical component of the energy transition, as it enables the integration of renewable energy into the grid and the electrification of transportation.”
The Role of Governments and Regulations
The conversation then turned to the role of governments and regulations in driving the energy transition. Rachlin acknowledged that government policies and regulations play a crucial role in shaping the investment landscape. However, he also emphasized that the private sector’s role in driving innovation and efficiency cannot be overlooked. “Governments can set the framework, but it’s the private sector that’s going to execute and bring these solutions to market,” he said.
Impact on Consumers
When asked about the potential impact of Neuberger Berman’s energy transition and infrastructure strategy on consumers, Rachlin highlighted the potential for lower energy costs and increased energy reliability. “As renewable energy becomes more cost-competitive and infrastructure improves, consumers are likely to benefit from lower energy costs and more reliable energy supplies,” he explained.
Global Implications
Beyond the individual consumer level, Rachlin also discussed the global implications of the energy transition and infrastructure investments. He noted that these trends are not limited to developed markets but are also gaining momentum in emerging markets. “The energy transition and infrastructure investments are not just a developed market story. They’re a global story, and we’re seeing significant opportunities in emerging markets as well,” he stated.
Conclusion
In conclusion, Doug Rachlin’s insights on Neuberger Berman’s energy transition and infrastructure strategy provide a valuable perspective on the intersection of profitability and sustainability in this space. The firm’s profit-driven approach, focus on renewable energy and infrastructure, and recognition of the role of governments and the private sector all highlight the potential for long-term growth opportunities in this area. As consumers and investors, we can look forward to the benefits of lower energy costs, increased energy reliability, and a more sustainable energy future.
- Neuberger Berman’s energy transition and infrastructure strategy focuses on profitability and sustainability.
- Renewable energy and infrastructure are key areas of opportunity.
- Governments and regulations play a role, but the private sector drives innovation and execution.
- Consumers may benefit from lower energy costs and increased energy reliability.
- The energy transition and infrastructure investments are a global story.
As we move forward, it will be interesting to see how these trends continue to unfold and what impact they will have on our daily lives and the world at large. Stay tuned for more insights and updates on this developing story.
