BlackRock Raises $1 Billion for Energy Transition-Focused Infrastructure Fund – ESG Today

Investment giant BlackRock announced today that it has raised nearly $1 billion in client commitments at the initial close of its energy transition and energy security-focused Evergreen Infrastructure fund,

Launched in June 2022, fund is a core, open-ended infrastructure equity fund that focuses on investing in infrastructure businesses in Europe and North America aligned with the themes of energy transition and energy security, in addition to a focus on thematic sectors including transportation, digital infrastructure and the circular economy.

According to BlackRock, the fund aims to partner with infrastructure businesses looking for financing to support their evolution and growth through the decades-long energy transition, including working with portfolio companies on the implementation of decarbonization activities, and tracking assessing and reporting on progress over time.

The fund will also track Temperature Alignment Key Performance Indicators, helping the portfolio management team align the fund to a 1.5°C temperature rise scenario, BlackRock said.

Anne Valentine Andrews, Global Head of Infrastructure and Real Estate at BlackRock, said:

“In today’s evolving energy landscape, companies are looking for capital that will partner with them as they adapt their businesses and navigate an accelerating long-term shift towards a lower-carbon economy. Evergreen’s forward-looking lens, partnership approach, and focus on core businesses and assets is designed to help investors capitalise on these dynamics, while supporting the sustainable growth of essential infrastructure.”

The cornerstone commitments to the fund at the initial close came from several European institutional investors as part of the Fund’s European Founding Partners program. They include Intesa Sanpaolo S.p.A., Italy’s largest bank, and Inarcassa, the first pillar pension scheme for Italian engineers and architects, among others. Western Europe, including Italy, is a key region for the Fund, with 50-60% of the total portfolio expected to be allocated to the region.

Flavio Gianetti, Executive Director of M&A and Group Shareholdings at Intesa Sanpaolo said:

“We are very pleased to be part of a project that underscores the ongoing importance of developing cutting-edge infrastructure with a strong focus on energy transition and sustainability. BlackRock’s new fund will span Europe and North America, regions teeming with opportunities for the construction or revitalization of sustainable telecommunications, digital, energy, gas storage, and renewable energy infrastructure.”

The Evergreen Infrastructure fund has already begun to commit capital and has signed definitive documentation to acquire Lighthouse, a U.S. C&I solar and battery storage platform with an operating portfolio spanning six U.S. states that capitalizes on the growing demand for distributed renewable energy, which is supported by the recently enacted U.S. Inflation Reduction Act.