BlackRock raises $1 billion for new energy transition fund

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BlackRock, the world’s largest asset manager, has announced the first close of its new open-end core infrastructure fund, which will invest in assets that support the global shift to clean and secure energy.

The fund, called BlackRock Energy and Infrastructure Partners (BEIP), has raised $1 billion from institutional investors, including pension funds, insurance companies and sovereign wealth funds. The fund has a target size of $5 billion and aims to generate returns of 8-11 percent.

BEIP will focus on long-term, essential and contracted infrastructure assets that are aligned with the energy transition and energy security themes. These include renewable power generation, distributed generation, battery storage and other infrastructure required for the decarbonization and electrification of the economy.

The fund has already made its first investment in Lighthouse, a US-based solar and battery storage platform that owns and operates over 100 projects across 15 states. The fund is also in advanced discussions with a European utility for a deal related to energy security.

Jim Barry, global head of BlackRock Real Assets, said: “The energy transition is one of the most significant investment opportunities of our time. BEIP will provide investors with access to a diversified portfolio of high-quality, essential and contracted infrastructure assets that will play a critical role in the transition to a low-carbon and resilient energy system.”

The launch of BEIP comes at a time when interest rates are rising and valuations are high, which poses challenges for core infrastructure funds to deploy capital and achieve attractive returns. BlackRock believes its fund offers better returns than similar core products and can benefit from the growing demand for clean energy and resilient infrastructure.

BlackRock is one of the leading investors in renewable energy and infrastructure, with over $60 billion of assets under management across equity and debt strategies. The firm has committed to aligning its investment portfolio with net zero emissions by 2050 and to supporting its clients in their sustainability goals.


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