BlackRock Real Assets (NYSE:BLK) has completed the first close of its
latest energy and power infrastructure fund, Global Energy & Power
Infrastructure Fund III (“GEPIF III”). GEPIF III focuses on equity
investments in the mid-market energy and power infrastructure value
chain primarily in developed countries.
GEPIF III has secured US$1.5 billion in commitments from prominent
institutional investors in North America, Middle East, Europe and Asia,
subject to certain post-closing conditions. This first close marks an
important milestone for the fund and for BlackRock Alternative
Investors, which offers clients comprehensive alternative investing
capabilities from real assets to private credit, private equity and
hedge fund solutions.
Capitalizing on investment opportunities arising from the evolving
macroeconomic fundamentals and global trends in the energy sector, the
GEPIF III team seeks to invest in energy infrastructure projects that
will generate current income and long-term capital appreciation, and
have cash flows with a general positive correlation to inflation, which
can enhance long-term returns.
“We believe that we can create attractive risk-adjusted returns in the
energy and power space for our investors,” said Mark Florian, Head of
the Global Energy & Power Infrastructure team, BlackRock Real Assets.
“As the world undergoes a structural shift in how it powers industry,
homes and transportation, there is significant need for new energy
infrastructure and the capital to finance it. Our core philosophy has
always been to make investments that we believe minimize risk and
promote capital preservation, while providing an opportunity to enhance
an asset or expand a business. ”
According to BlackRock’s 2018 Global Rebalancing Survey, more than 60%
of institutional investors intend to increase their total allocation to
real assets this year, more than any other asset class.
“The strength of our energy and power franchise enhances our ability to
provide clients with comprehensive solutions as alternatives play an
increasingly important role in their portfolios,” said Jim Barry, Global
Head of BlackRock Real Assets. “With the dynamic of growing investor
interest combined with ample infrastructure investment opportunities, we
believe that we are well positioned to meet our clients’ needs for
long-term sustainable outcomes.”
GEPIF III is the third fund in the Global Energy & Power Fund series. In
June last year, BlackRock acquired the First Reserve Energy
Infrastructure Franchise from First Reserve, L.P. The Infrastructure
Team that joined BlackRock from First Reserve, L.P. continues to manage
the previous two funds and formed a new Global Energy & Power
Infrastructure group within BlackRock Real Assets, complementing the
existing infrastructure franchise of BlackRock.
BlackRock helps investors build better financial futures. As a fiduciary
to our clients, we provide the investment and technology solutions they
need when planning for their most important goals. As of March 31, 2018,
the firm managed approximately $6.317 trillion in assets on behalf of
investors worldwide. For additional information on BlackRock, please
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About BlackRock Real Assets
BlackRock Real Assets provides clients access to a distinct range of
outcome-orientated real asset investment strategies – including
infrastructure, real estate and renewable power – spanning the entire
risk / return spectrum. Clients benefit from BlackRock’s global reach
and local on-the-ground expertise, as well as the firm’s market-leading
risk management, technology and analytics capabilities. As of March 31,
2018, BlackRock Real Assets managed more than $41 billion in invested
and committed client assets, supported by more than 360 professionals
across 25 offices in 15 countries.
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