Blackstone, an alternative investment manager, has announced the successful closure of its energy transition credit fund, BGREEN III, with a substantial $7.1 billion raised. This achievement marks the largest amount ever amassed for a private credit fund aimed at facilitating the energy transition.
The management of this fund falls under Blackstone Credit’s Sustainable Resources Platform, established by Blackstone in January 2022. The primary objective of this platform is to extend investments and financing to companies operating in the renewable energy sector and those contributing to the shift towards cleaner energy sources. This encompasses a wide array of domains such as residential solar, enhanced home energy efficiency, renewable power generation and storage, technologies, products, services, and natural resources that facilitate the transition to cleaner energy, along with investments in decarbonized transportation, sustainable loans, environmentally conscious financial instruments, and other energy-related infrastructure ventures. The investments made through this platform span a diverse credit spectrum, ranging from both investment-grade and non-investment-grade credit to preferred and convertible securities.
When introducing the platform the previous year, Blackstone articulated its intention to channel approximately $100 billion into projects related to energy transition and climate change solutions within the coming decade.
Dwight Scott, Global Head of Blackstone Credit, said:
“Blackstone has built a premier platform focused on private credit in the energy transition and infrastructure markets. We are grateful for the trust from our limited partners and look forward to investing in this favorable market environment.”
Robert Horn, Global Head of the Sustainable Resources Group for Blackstone Credit, said:
“The energy transition is impacting large sectors of the economy and is resulting in a growing need for efficient private capital. We believe our experience and scale will enable Blackstone Credit to deliver flexible solutions to companies driving this historic transition and generate compelling returns for our investors.”