One of the largest asset-management companies in the world is pushing further into clean-energy investments.
Key Details
- BlackRock has raised more than $4.5 billion for a new climate-based infrastructure asset fund called Global Infrastructure Fund IV.
- “Infra IV, which is targeting $7.5 billion, succeeds Global Energy & Power Infrastructure Fund III and recognizes that the global energy transition is driving changes in many sectors beyond energy and power,” says Black Rock.
- “The asset manager said the new fund will invest in five sectors––energy, low carbon power, transport and logistics, regulated utilities, and digital infrastructure––to capitalize on the growing trend towards decarbonization and digitalization,” says Reuters.
- The fund will use fixed-rate debt and focus its investments to adapt well to high inflation.
Why it’s important
The company believes it can benefit and profit from the global push for clean-energy investments and build-up.
“Over the coming decades, the energy transition will impact every part of the global economy, presenting significant investment opportunities for infrastructure investors,” says BlackRock.
The company has faced criticism in the past from multiple directions for its approach to energy investments, preferring investing in sustainable resources over profitability, Reuters reports.
“BlackRock has faced criticism from many sides in the debate on low-carbon fuels, with environmentalists protesting it does too little to press for change at fossil-fuel portfolio companies, and Republican U.S. politicians accusing it of boycotting energy stocks,” says Bloomberg.
Notable quote
“Demand for investment in infrastructure—essential for energy, industry, transport, and other basic needs—is expected to significantly increase over the long term. Leveraging the team’s expertise, including unique sourcing, innovative deal construction, and active management, as well as BlackRock’s global platform, Infra IV seeks 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 being accelerated by the global energy transition—Decarbonization, Decentralization, and Digitalization,” says BlackRock.
