NEW YORK--(BUSINESS WIRE)--BlackRock Real Assets has achieved a US$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.
An early mover in identifying renewable power infrastructure as an attractive global fundamental growth story for institutional investors, 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 lifetimes1, equivalent to a country the size of Spain.
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 Finance2.. Globally, investors are embracing the less cyclical nature of renewable power assets as they are rebalancing their portfolios and asset allocation plans3. 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.
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of September 30, 2019, the firm managed approximately $6.96 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com/corporate
About BlackRock Real Assets
In today’s dynamic and complex global investing market, we seek to help our clients’ access real assets that could help meet their investment goals by providing a distinct range of well defined, outcome orientated strategies, along the investment risk - return spectrum.
Our dedicated teams of industry and sector specialists deliver global reach, with deep local expertise. They have decades of relevant experience, are deeply embedded in their operating industries by sector and geography and have developed strong partnership networks over time. BlackRock’s culture of risk management, knowledge sharing and investment discipline sets us apart and underpins all that we do. With over 410 professionals in 27 offices managing over US $50 billion in client commitments as of 30 June 2019, BlackRock Real Assets partners with clients to provide solutions tailored to individual portfolio needs such as income, growth, liquid or balanced real assets outcomes.
The information above is not a prediction of future performance or any assurance that comparable investment opportunities will be available at the time of investment. It is non-representative of all underlying investments made by the Investment Team and it should not be assumed that Investment Team will invest in comparable investments, or that any future Investments made by Investment Team will be successful. To the extent that this investment proves to be profitable, it should not be assumed that the Investment Team’s other investments will be profitable or will be as profitable.
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1 BlackRock, 30 June 2019
2 Bloomberg New Energy Finance, New Energy Outlook 2019
3 BlackRock 2019 Global Institutional Survey. 230 institutional clients, representing over $7 trillion in investible assets, participated in our annual institutional client rebalancing survey.
4 Morgan Stanley Institute for Sustainable Investing, Sustainable Signals: Asset Owners 2018 survey