BlackRock achieves $1 billion first close for renewables strategy

BlackRock Real Assets has achieved a $1 billion first close for its Global Renewable Power III fund with commitments from more than 35 institutional investors in North America, Europe and Asia. The record first close reflects strong investor demand for renewable power assets that can generate attractive risk-adjusted returns with low correlation to the economic cycle, and that align with their long-term sustainability goals.

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.”

BlackRock manages one of the largest global renewable power platforms with $5.5 billion in equity assets under management, and this fund seeks to invest across the spectrum of climate infrastructure assets, with a focus on renewable power generation, and energy storage and distribution.

The green energy transition seems set to continue, with wind and solar power generation alone requiring a $10 trillion investment globally, according to Bloomberg New Energy Finance.