Alternative investment manager Blackstone announced today that it has raised $7.1 billion at the final close of its energy transition credit fund, Blackstone Green Private Credit Fund III (BGREEN III).
The firm said that the fund is the largest energy transition private credit fund ever raised.
Dwight Scott, Global Head of Blackstone Credit, said:
“Blackstone has built a premier platform focused on private credit in the energy transition and infrastructure markets. We are grateful for the trust from our limited partners and look forward to investing in this favorable market environment.”
The fund is managed by Blackstone Credit’s Sustainable Resources Platform. Blackstone launched the platform in January 2022, to invest and lend to renewable energy companies and those supporting the energy transition, in areas including residential solar and home efficiency, renewable electricity generation and storage, products, services, technologies and natural resources that enable the energy transition, decarbonized transportation, sustainability linked loans, green financings, and other energy infrastructure investments. The platform’s investments span the credit spectrum, ranging from investment and non-investment grade credit to preferred and convertible securities.
At the launch of the platform last year, Blackstone stated that it sees an opportunity to invest an estimated $100 billion in energy transition and climate change solutions projects over the next decade.
Robert Horn, Global Head of the Sustainable Resources Group for Blackstone Credit, said:
“The energy transition is impacting large sectors of the economy and is resulting in a growing need for efficient private capital. We believe our experience and scale will enable Blackstone Credit to deliver flexible solutions to companies driving this historic transition and generate compelling returns for our investors.”