Alternative investment manager Blackstone announced the launch by its credit division, Blackstone Credit, of a new Sustainable Resources Platform, which will invest and lend to renewable energy companies and those supporting the energy transition. Along with the launch, Blackstone outlined the massive opportunities anticipated for investment in the energy transition over the next few years.
The new Sustainable Resources Platform will be led by Robert Horn, who has been appointed Global Head of the Sustainable Resources Group for Blackstone Credit. Horn will lead a team of over 30 investment professionals across North America and Europe.
“We believe large scale and flexible capital are essential to funding decarbonization. We look forward to providing efficient capital and Blackstone’s expertise to companies across a range of sectors that we believe are driving this important transition.”
Areas of investment for the new platform will include 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. Investments will span the credit spectrum, ranging from investment and non-investment grade credit to preferred and convertible securities.
Blackstone also announced the appointment of Simon Hayden as Senior Managing Director for Blackstone Credit in London, responsible for leading the Sustainable Resources activities in Europe. Hayden joins from energy-focused institutional investor EIG Global Energy Partners.
“I am delighted to join the world class team at Blackstone Credit and drive its European activities in sustainable resources.”
The launch marks the latest in a series of moves by Blackstone to capitalize on the investment opportunities emerging from global initiatives to decarbonize, as governments and companies around the world launch and pursue net zero commitments. Earlier this month, Blackstone announced an agreement to invest approximately $3 billion in private renewable energy company Invenergy Renewables Holdings, with other recent transactions including a recent $500 million commitment to utility-scale solar technology manufacturer Array Technologies, and the acquisition of infrastructure products and solutions company Sabre Industries.
While Blackstone has already has committed over $15 billion in investments in this area since 2019, the company stated today that it sees an opportunity to invest an estimated $100 billion in energy transition and climate change solutions projects over the next decade.
Jon Gray, President and COO of Blackstone, said:
“The launch of this platform demonstrates our conviction in the investment opportunities presented by the energy transition. Companies globally are shifting to meet this demand. We believe private capital is essential to supporting decarbonization goals and our scale allows us to play a major role.”