BlackRock is launching a “perpetual” infrastructure strategy to invest in firms pushing the global energy transition from oil and gas to sustainable alternatives.
Over half of the strategy will initially be allocated to Europe, although BlackRock has asserted it will be “becoming increasingly global” moving forward.
The BlackRock strategy will look to invest in energy transition and energy security, as well as digital and community infrastructure, sustainable mobility, and the circular economy.
It will also invest in businesses such as utilities and end-to-end renewable energy infrastructure, as well as assets such as data centres, grid digitisation technologies, battery storage systems, and natural gas storage and transport facilities.
Edwin Conway, global head of BlackRock Alternative Investors, said: “We believe the intersection of infrastructure and sustainability will be one of the biggest opportunities in alternative investments in the coming years. At the same time, recent events have sharpened the focus on energy security and further compounded the need for infrastructure investment.
“Private markets will continue to play a pivotal role in the energy transition, and we are pleased to offer our clients another way to go beyond simply navigating the transition to driving it forward.”
BlackRock intends to launch the open-ended investment vehicle later this year and will be seeking founding partners in the second half of 2022.
Previous BlackRock investments in this space include a joint venture with KX Power, the UK-based developer and operator of battery energy storage systems, and an investment in energy infrastructure firm Kellas Midstream, which is focused on developing a large hydrogen project and is also based in the UK.
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