Investment giant BlackRock today announced it has raised nearly $1 billion in client commitments in the first close of its energy transition and energy security-focused Evergreen Infrastructure fund.
Launched in June 2022, the fund is an open core infrastructure equity fund focused on investing in infrastructure companies in Europe and North America, in line with the themes of energy transition and energy security, in addition to a focus on thematic sectors including transport, digital infrastructure and the circular economy.
According to BlackRock, the fund aims to work with infrastructure companies seeking financing to support their evolution and growth during the decades-long energy transition, including working with portfolio companies on the implementation of decarbonization activities, and tracking assessment and reporting about progress over time. .
The fund will also track Key Performance Indicators (temperature tuning), which will allow the portfolio management team to tune the fund for a 1.5°C temperature increase, BlackRock said.
Anne Valentine Andrews, Global Head of Infrastructure and Real Estate at BlackRock, said:
“In today’s evolving energy landscape, companies are looking for capital to partner with them as they adapt their operations and navigate an accelerating long-term shift to a lower carbon economy. Evergreen’s forward-looking lens, partnership approach and focus on core businesses and assets are designed to help investors capitalize on these dynamics while supporting the sustainable growth of essential infrastructure.”
The cornerstone commitments to the fund at its initial close came from several European institutional investors as part of the Fund’s European Founding Partners program. These include Intesa Sanpaolo SpA, Italy’s largest bank, and Inarcassa, the first pillar pension scheme for Italian engineers and architects. Western Europe, including Italy, is a key region for the Fund, with 50-60% of the total portfolio expected to be allocated to the region.
Flavio Gianetti, Executive Director of M&A and Group Shareholdings at Intesa Sanpaolo said:
“We are very pleased to be part of a project that underlines the continued importance of developing advanced infrastructure with a strong focus on energy transition and sustainability. BlackRock’s new fund will cover Europe and North America, regions full of opportunities to build or revitalize sustainable telecommunications, digital, energy, gas storage and renewable energy infrastructure.”
The Evergreen Infrastructure fund has already started investing capital and signed definitive documentation for the acquisition of Lighthouse, a US solar and battery storage C&I platform with an operating portfolio spanning six US states and addressing the growing demand for distributed renewable energy, which is supported by the recently passed US Inflation Reduction Act.