One of the largest private equity funds, Blackstone has successfully raised $7.1 billion for its energy transition credit fund called Blackstone Green Private Credit Fund III (BGREEN III). This fund is the largest of its kind ever created for supporting the shift to cleaner energy.
“Blackstone has built a premier platform focused on private credit in the energy transition and infrastructure markets”, Dwight Scott, the Global Head of Blackstone Credit, said.
The fund is managed by Blackstone Credit’s Sustainable Resources Platform, which was launched in January 2022. This platform focuses on investing in renewable energy companies and projects that contribute to the energy transition. This includes various aspects like residential solar, renewable electricity generation, storage, and technologies that facilitate the move toward cleaner energy sources.
Robert Horn, the Global Head of the Sustainable Resources Group for Blackstone Credit, highlighted that the transition to cleaner energy sources is creating a significant need for private capital. Blackstone’s extensive experience and resources position them to offer flexible solutions to companies driving this transition, ultimately benefiting both the companies and the investors.
Blackstone to invest $100 billion in energy transition
Last year, during the launch of this platform, Blackstone stated its intention to invest around $100 billion in projects related to energy transition and climate change solutions over the next decade.
According to a report by the American Investment Council, private equity firms invested a record-breaking $26 billion in the renewable energy sector of the United States in 2022. This marks a significant increase from the $21.5 billion invested in the previous year.
Over the last ten years, private capital has been channeled into the cleantech industry through 756 investments, totaling a substantial $136 billion. In 2022 alone, wind and solar projects received $16 billion in funding.
Brookfield Asset Management has announced its intention to launch a second large-scale decarbonization fund, following the successful closure of Brookfield Global Transition Fund I at $15 billion in 2022. In addition, Reuters reported that The Carlyle Group Inc. is also in the process of setting up a second fund for renewable energy and sustainability, with an expected funding of at least $1.6 billion.
