Blackrock is developing a new perpetual infrastructure fund which will see it invest in leading infrastructure businesses to help support the energy transition.
The investment manager said it will look to commit capital in the fields of energy transition and energy security, as well as digital and community infrastructure, sustainable mobility, and the circular economy.
Over half of available capital will be allocated to Europe initially, but will become “increasingly global” in the following decades, it said.
Potential targets identified by the group include integrated businesses such as utilities and renewable energy firms, as well as assets such as data centres, grid technologies, battery storage and natural gas storage and transport facilities, which may also be adaptable to incorporate hydrogen.
BlackRock intends to launch underlying open-ended investment vehicles and will be seeking founding partners in the second half of 2022.
As a perpetual fund, its open-ended structure provides the ability to continuously raise and invest capital over the life of the strategy, it added.
BlackRock said it will also take an active approach in these investments, helping companies transition to lower-carbon business models over time.
The global head of BlackRock Alternative Investors, Edwin Conway, noted that: “Private markets will continue to play a pivotal role in the energy transition, and we are pleased to offer our clients another way to go beyond simply navigating the transition to driving it forward.”
The group pointed to existing investments in a joint venture with UK-based battery storage developer KX Power, and in energy infrastructure firm Kellas Midstream as emblematic of the infrastructure partners it is seeking.
The latter company is also spearheading the H2NorthEast scheme, a plan to build a 1GW blue hydrogen facility using gas brought ashore at the CATS Terminal. It intends to make a final investment decision on the £750 million project some time in 2024.
Blackrock also noted existing investments in smart meter installer Calisen and in high-capacity EV charging operator IONITY.
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