BlackRock has launched its Climate Transition-Oriented Private Debt Fund (CPD) to hasten the shift to a low-carbon economy, operating within its Global Private Debt platform.
Utilising its climate transition rating framework, the fund aids companies at different transition stages to net zero emissions. BlackRock will actively collaborate with financed companies on carbon reporting and decarbonisation, believing effective climate strategies bolster business resilience and credit quality.
The Fund taps into BlackRock’s global private debt platform to invest in performing middle market companies, chiefly in European and US sectors, emphasising direct lending to support borrowers’ climate goals.
The portfolio will be managed by BlackRock’s private debt investors, encompassing specialists in sustainability and transition from across the firm. BlackRock’s transition investing platform, currently valued at over $100 billion, is backed by research and a 600-member workforce focused on sustainability.
BlackRock’s recent ‘Global Transition Investor Survey‘ showcased a trend toward transition-oriented strategies: 98% of investors have defined transition aims, and 75% of institutional investors have set net-zero targets.
Sonia Rocher, portfolio manager and sustainability investing lead for BlackRock’s Global Private Debt platform, commented: “The new fund is designed to respond to client demand for transition-oriented private debt strategies by investing in mid-sized firms with carbon emissions reduction goals or companies providing climate solutions. It supports them in their carbon reporting and achievement of their roadmap to reduce emissions.”
CPD is a constituent of BlackRock’s Global Private Debt platform, which currently manages $84 billion in client assets.
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