On Wednesday, Denver-based commodity crowdfunder PetroFunders officially launched its inaugural Royalty Interest Fund (RIF I), a yield-oriented fund that aims to deliver periodic income to investors by investing in oil and gas royalties, often sought by investors as a portfolio diversifying, income-generating and inflation-hedging asset. According to the company, PetroFunders is the first platform of its kind to offer exposure to these kinds of institutional-grade energy funds to all investors.
“The mission of PetroFunders is to introduce change into the dated ways of investing in oil and gas,” said PetroFunders CEO, Co-Founder and Fund Manager Maurice Dukes, who started PetroFunders in 2019 after several years in a private equity-backed upstream (E&P) company. “Through our investment platform, the average investor will be able to benefit from our extensive upstream experience in the oil and gas industry and access income in a simple and streamlined manner. We believe in equal investing opportunities for all, and the launch of our platform and opening of our first flagship fund, RIF I, is a major step forward in realizing this vision.”
PetroFunders points out that ownership of upstream energy assets has typically been the preserve of ultra-wealthy investors and institutions. Now, with the opening of RIF I, the company hopes to provide investment exposure to oil and gas royalties at lowest cost to a broader segment of investors. The minimum investment is $10,000 and access is offered exclusively through the PetroFunders platform.
“We’re not only allowing new investors into the space, but we’re also introducing a gold standard framework for how to access income from royalty interests,” said PetroFunders co-founder and COO, Ryan Werking. “With the PetroFunders platform and our experienced team, we are providing a cutting-edge way for more investors to access the wealth generated in oil and gas. As an SEC Registered Investment Advisor, we are providing new ways for investors to utilize investment funds.”
“By focusing on royalty investments in developed fields, the RIF I significantly reduces investor technical risk exposure versus the drilling and development-oriented alternatives while retaining excellent exposure to commodity prices,” said PetroFunders Advisor R. Scott Sloan. “In today’s low yield environment with inflation risk reappearing the RIF I can serve an important role in creating an optimized investment portfolio.”
PetroFunders plans to expand its investment platform to introduce future financial vehicles that unlock value from the oil and gas asset class.
