BlackRock Real Assets has successfully achieved a USD4.8 billion final close for Global Renewable Power Fund III (GRP III) with commitments from over 100 institutional investors, including leading public and private pension funds, insurance companies, endowments, foundations and family offices from over 18 countries globally.
GRP III is the third vintage of BlackRock’s Global Renewable Power fund series and the fifth Fund overall, which invests in global climate infrastructure assets, primarily in renewable power generation, across Americas, Europe and Asia. GRP III seeks to deliver attractive risk-adjusted returns with positive and measurable environmental and social impact by investing across the spectrum of renewable power and supporting infrastructure globally, including energy storage, distribution and electrified transport. Its opportunity set reflects the evolving renewable energy market as well as investors’ growing interest in investments that support the transition to a low carbon economy.
The Fund has actively begun investing capital and to date has already completed three investments in Europe, Asia, and North America. These investments include onshore wind in Europe, solar in Asia, and distributed solar generation in the US, with each project playing a vital role in the region’s road to net zero. GRP III follows GRP I, a 2012 vintage, and GRP II, a 2016 vintage, both of which are fully invested.
David Giordano, Global Head of BlackRock Renewable Power, says: “We are delighted with the success of this fundraise, which is a testament to the strong global demand for renewable power assets and to our team’s ability to build resilient portfolios that help clients meet their financial and sustainability objectives. By sourcing, building, and optimising assets throughout their lifecycle, we believe that renewable power has the potential to generate attractive risk adjusted returns and stable cash yields for investors with low correlation to the economic cycle.”
Jim Barry, Chief Investment Officer of BlackRock Alternative Investors and Global Head of BlackRock Real Assets, says: “GRP III invests in the sustainable infrastructure of the future. As the world strives toward net zero carbon emissions by 2050, the transition will have dramatic impacts not only for public equities but for private markets as well, creating significant opportunities for front-footed investors. BlackRock is committed to growing its sustainable private market offerings across asset classes, including climate infrastructure.”
BlackRock’s Global Renewable Power platform has invested in over 250 wind and solar projects across 13 countries in four continents. The Global Renewable Power team consists of 54 professionals, with an average of 20 years of investment and technical expertise. The team manages over USD9 billion of client capital, with an emphasis on globally diversified portfolios, measurable climate impact and differentiated sourcing.
BlackRock’s investment conviction is that integrating sustainability can help investors build more resilient portfolios and achieve better long-term, risk-adjusted returns. The GRP III fund has achieved the highest article 9 rating in line with the European Sustainable Finance Disclosure Regulation. As a fiduciary, BlackRock is committed to helping clients navigate the transition to a net zero world, in which the economy emits no more carbon dioxide than it removes from the atmosphere. As part of that commitment, BlackRock’s goal is to offer clients a full set of climate-oriented investment options across asset classes and geographies, including strategies that seek out new opportunities in climate innovation.