BlackRock Inc to launch a new private credit fund – The Climate Transition-Oriented Private Debt Fund – as part of an ESG-focused investing platform that the firm says is worth more than $100bn, according to a report by Bloomberg.
The report cites an emailed statement from the firm as confirming that the new fund will be managed by a team of private debt investors together with sustainability and transition investing specialists from across the firm.
“The strategy focuses on the transition to a low-carbon economy as one of several mega forces driving investment opportunities,” James Keenan, chief investment officer and global head of private debt for BlackRock, said in the email.
The new fund will invest in mid-sized firms with carbon emissions reduction goals or companies providing climate solutions, according to Sonia Rocher, portfolio manager and sustainability investing lead for BlackRock’s Global Private Debt platform.
Having risen by 304% in the 18 months up to the end of June, according to a recent Morningstar Inc report, climate transition has emerged as one of the most popular ESG fund strategies in the US.
Globally, 90 ESG funds have closed so far this year, but 253 were opened, while in the US, 25 more ESG funds were created than were shuttered, according Morningstar Direct.
