Global investment manager BlackRock’s BlackRock Real Assets has achieved a $1 billion first close for its Global Renewable Power III fund (“GRP III”) with commitments from over 35 institutional investors in North America, Europe and Asia.
The record first close reflects strong investor demand for renewable power assets that can potentially generate attractive risk-adjusted returns with low correlation to the economic cycle, and that align with their long-term sustainability goals.
GRP III is the third vintage of BlackRock’s global renewable power fund series. The Fund seeks to invest across the spectrum of climate infrastructure assets, with a focus on renewable power generation, and energy storage and distribution.BlackRock manages one of the largest global renewable power platforms with $5.5 billion in equity assets under management. Since 2011, BlackRock’s Global Renewable Power platform has invested in more than 250 wind and solar projects globally on behalf of 150 investors.
These projects would provide enough clean energy to power 19 million homes over their lifetimes, equivalent to a country the size of Spain.
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David Giordano, Global Head of BlackRock Renewable Power, said, “As global power generation shifts from two-thirds fossil fuels to two-thirds renewables over the next few decades, renewables are increasingly becoming a standalone allocation for investors and one of the most active sectors in infrastructure. Led by an experienced team of renewable power sector specialists, we are well positioned to source the best investment opportunities presented by the energy transition for our clients.”
Mr. Giordano continued, “GRP III helps clients build portfolio resilience by seeking to deliver returns driven by wind and solar, strong cash yields from the clean power we sell and capital growth from building and optimizing assets. At the same time, more and more investors are asking for solutions that allow them to invest in positive environmental outcomes. Our impact assessment framework provides market-leading reporting that measures and dollarizes the positive contribution made by our clients to help address the UN’s Sustainable Development Goals.”
The green energy transition is set to continue, with wind and solar power generation alone requiring a $10 trillion investment globally according to Bloomberg New Energy Finance. Globally, investors are embracing the less cyclical nature of renewable power assets as they are rebalancing their portfolios and asset allocation plans. Interest in sustainability also continues to rise, with 84% of investors considering or already pursuing ESG integration and 78% seeking to align with the UN Sustainable Development Goals4. GRP III seeks to meet the financial and sustainability challenges investors are facing today.