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BlackRock is creating a "perpetual" infrastructure strategy to invest in companies driving the global energy shift away from oil and natural gas and towards sustainable alternatives.
Over fifty percent of the strategy will initially be committed to Europe, but BlackRock has stated that it will "become increasingly global" as time passes.
BlackRock's investment strategy will target the energy transition and energy security, as well as digital and community infrastructure, sustainable transportation, and the circular economy.
It will also invest in utilities and renewable energy infrastructure from end-to-end, as well as data centres, grid digitisation technologies, battery storage systems, and natural gas storage and transit facilities.
Edwin Conway, global head of BlackRock Alternative Investors, stated, "We believe the convergence of infrastructure and sustainability will be one of the greatest possibilities in alternative investing over the next several years. Moreover, recent events have heightened the importance of energy security and increased the demand 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 plans to create the open-ended investment vehicle by the end of the year and will seek founding partners in the second half of 2022.
Previous BlackRock investments in this sector include a joint venture with KX Power, a UK-based manufacturer and operator of battery energy storage systems, and an investment in Kellas Midstream, a UK-based energy infrastructure company focused on creating a big hydrogen project.
By fLEXI tEAM