Blackstone Closes Record Energy Transition Private Credit Fund at Over $7 Billion

Rhea-AI Summary

Blackstone closes its energy transition credit fund, BGREEN III, at $7.1 billion, the largest ever raised. The fund will focus on providing private credit to the renewable energy, infrastructure, and energy transition marketplace.

Positive

• Blackstone raised $7.1 billion for its energy transition credit fund, representing the largest ever raised in this sector. The fund will invest in renewable energy and infrastructure projects, providing flexible solutions to companies driving the energy transition.

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• None.

Largest private credit energy transition fund ever raised¹

NEW YORK--(BUSINESS WIRE)-- Blackstone (NYSE: BX) today announced the final close of its energy transition credit fund, Blackstone Green Private Credit Fund III (BGREEN III). BGREEN III closed at its hard cap of $7.1 billion, representing 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.”

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.”

BGREEN III is managed by Blackstone Credit’s Sustainable Resources Platform, which focuses on providing private credit to the renewable energy, infrastructure, and energy transition marketplace. The Platform has approximately 40 investment professionals across North America, Europe, and Asia and invests across the credit spectrum in investment grade credit, non-investment grade credit, preferred and convertible securities. In 2022, Blackstone announced that it sees an opportunity to invest an estimated $100 billion in energy transition and climate change solutions projects over the next decade across its businesses.

Blackstone Credit
Blackstone Credit is one of the world’s largest credit-focused asset managers. Blackstone’s Credit and Insurance segment has $295 billion in AUM. Blackstone Credit seeks to generate attractive risk-adjusted returns for our clients by investing across the entire corporate credit market, from public debt to private loans. Our capital supports a wide range of companies across sectors and geographies, enabling businesses to expand, invest, and navigate changing market environments.

¹ Source: Preqin, Pitchbook, company websites, and publicly available information as of August 5, 2023. BGREEN III commitments included in this figure are as of August 8, 2023 to reflect final closing amount. Analysis based on universe of private credit funds closed since 2006 with fund sizes of $7B or greater.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230810773196/en/

Kate Holderness

Kate.Holderness@Blackstone.com

646-482-8774

Mariel Seidman-Gati

Mariel.seidmangati@blackstone.com

917-698-1674

Source: Blackstone

FAQ

What is the size of Blackstone's energy transition credit fund, BGREEN III?

BGREEN III closed at $7.1 billion, making it the largest energy transition private credit fund ever raised.

What sectors will BGREEN III focus on?

BGREEN III will focus on providing private credit to the renewable energy, infrastructure, and energy transition marketplace.

How much does Blackstone plan to invest in energy transition projects?

Blackstone plans to invest an estimated $100 billion in energy transition and climate change solutions projects over the next decade.