Article: New York gets a taste for hard assets.(Investment banks' energy infrastructure buying spree)

Is the center of the energy world shifting to New York? Investment banks and funds are now some of the biggest buyers of energy infrastructure. Purchases of pipelines and power plants from the imploding energy merchants in the Enron era got the ball rolling but Goldman Sachs has gone a step further--buying up a Kansas refinery. The Blackstone Group netted an eventual $1.4 billion from its investment in independent refiner Premcor--showing the appeal of a straight buy-upgrade-sell strategy--but some banks are becoming much more active in exploiting the synergies between owning physical assets and energy trading. GS Capital Partners, the private equity arm of the Goldman ...

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