BlackRock Raises $4.5 Billion for Clean Energy Focused-Infrastructure Fund
The infrastructure fund has an overall $7.5 billion investment target
Asset management firm BlackRock has raised $4.5 billion in its initial investor commitments for a new fund to invest in climate and clean energy-focused projects.
The BlackRock Global Infrastructure Fund IV (Infra IV), with a target of $7.5 billion, will invest in essential infrastructure assets globally by securing initial commitments from a diverse group of institutional investors, including public and private pension funds, sovereign wealth funds, insurance companies, and family offices.
The new fund aims to invest across five sectors – Energy & Environmental, Low Carbon Power, Regulated Utilities, Transportation & Logistics, and Digital Infrastructure.
Infra IV aims to build a diversified portfolio of essential, contracted infrastructure assets and businesses worldwide that are well-positioned to capitalize on three long-term structural trends accelerated by the global energy transition – Decarbonization, Decentralization, and Digitalization.
The latest fund succeeds Global Energy & Power Infrastructure Fund III (GEPIF III) and recognizes that the global energy transition is driving changes in many sectors beyond energy and power. The GEPIF III held a final close of $5.1 billion in 2020.
The BlackRock Alternatives infrastructure platform offers a leading suite of strategies to help clients invest in climate solutions and accelerate the transition to a low-carbon economy.
The company said the energy transition presents many investment opportunities for infrastructure investors. The fund’s portfolio management team has significant experience investing in infrastructure assets aligned with the transition, including carbon capture, renewable power, energy efficiency, and renewable fuels. Infra IV is expected to continue to target investments in climate solutions while supporting the infrastructure needed to ensure a stable, affordable energy supply during the transition.
BlackRock Alternatives’ infrastructure platform currently manages over $50 billion in client assets across infrastructure equity, infrastructure debt, listed securities, and solutions strategies.
Earlier this year, BlackRock Alternatives Management and Abu Dhabi government’s investment vehicle Mubadala Investment Company announced an investment of ₹40 billion (~$525 million) in Tata Power Renewable Energy. The investment in terms of equity share allotment was recently approved by Tata Power.
In August last year, BlackRock Real Assets signed an agreement to acquire an undisclosed equity stake in a South Korean solar aggregator and operator, Brite Energy Partners. The firm aims to inject more than $100 million in capital over time to fund the acquisition and construction of solar assets of over 350 MW in power generation capacity.