BlackRock Raises $5.1 Billion for Renewable Energy

It is the largest alternative fundraise in the company’s history


BlackRock’s Global Energy and Power Infrastructure Fund has achieved a $5.1 billion fundraise for Global Energy & Power Infrastructure Fund III (GEPIF III), making it the most substantial alternative fundraise in the company’s history.

The final value of $5.1 billion (~₹386.62 billion) exceeded the original fund target of $3.5 billion (~₹265.33 billion) and a hard cap of $4.5 billion (~₹341.13 billion). The news was made public by the company in a press release.

Commenting on this latest development, Edwin Conway, Global Head of BlackRock’s Alternative Investors, tweeted, “This milestone is a testament to BlackRock’s focus on helping clients achieve better investment outcomes.”

The GEPIF III fund invests in long-term infrastructure projects that will have substantial returns in time.  “The current market volatility has underscored the value of our commitment to delivering solutions that can help our clients match their long-term liabilities and support their beneficiaries. Investor demand for this fundraise reinforces our belief that infrastructure will play an increasingly important role in portfolio construction moving forward,” he added.

The main aim of GEPIF III is to generate high returns on investments in essential energy infrastructure businesses and assets. The investments cater to energy sub-sectors, which include the power sector, including the power generated from renewable sources such as solar, wind, hydro, and natural gas, while at the same time excluding power generated from coal. The investments also cater to the midstream sector, which includes energy transportation and storage and the utility sector.

Commonly known as the ‘Fund,’ its commitments include investments from over 50 institutional investors, which include public and private pension funds, sovereign wealth funds, and non-profit organizations across the U.S., Asia, Europe, and the Middle East.

Commenting on the successful fundraise, Mark Florian, head of the power & infrastructure team at BlackRock, said, “The success of the fundraise reflects the search for diversified returns in a yield-starved environment, which continues to be front of mind for investors. Our strong off-market sourcing capabilities are differentiated by a disciplined investment approach focused on creating an optimized risk-adjusted return for our investors and a tailored solution for our partners and their customers.”

BlackRock, one of the leading providers of financial technology, managed nearly $7.43 trillion in assets on behalf of investors worldwide as of December 31, 2019.

In July last year, BlackRock Real Assets had announced its plans to expand its renewable power portfolio in Asia. The company had announced its intention to buy a 115 MW solar portfolio comprising 14 projects in Taiwan from New Green Power (NGP) and J&V Energy. The acquisition was BlackRock’s second renewables investment in Taiwan after it had acquired the entire equity interest in a 59 MW solar portfolio comprising 28 projects in Taiwan from J&V Energy Technology Company.

Earlier, Mercom had reported that GEPIF III had secured $1.5 billion in commitments from prominent institutional investors in North America, Middle East, Europe, and Asia, subject to certain post-closing conditions.