NEW YORK--(BUSINESS WIRE)--BlackRock’s Global Energy & Power Infrastructure Fund (‘GEPIF’) has achieved a US$5.1 billion final close of Global Energy & Power Infrastructure Fund III (‘GEPIF III’ or ‘the Fund’), making it the largest alternative investment fundraise in BlackRock history. The final close value also exceeded both the original Fund target of US$3.5 billion and the original hard cap of US$4.5 billion.
“This milestone is a testament to BlackRock’s focus on helping clients achieve better investment outcomes,” said Edwin Conway, Global Head of BlackRock Alternative Investors. “Investors are looking to build resilience into their portfolios and ballast against equity market shocks by increasing their allocations to less correlated exposures in private markets. The current market volatility has underscored the value of our commitment to delivering solutions that can help our clients match their long-term liabilities and support their beneficiaries. Investor demand for this fundraise reinforces our belief that infrastructure will play an increasingly important role in portfolio construction moving forward.”
The Fund’s commitments include investment mandates from over 50 institutional investors, including public and private pension funds, sovereign wealth funds, foundations, insurance companies and non-profit organizations across the U.S., Europe, Asia and the Middle East. Over 70% of the commitments are from investors in the prior fund, which reflects investors’ high-level of confidence and trust in the GEPIF team and its expertise in the space.
Building on the investment strategy of its predecessor funds, GEPIF III aims to generate strong uncorrelated returns from investments in high-quality and essential energy infrastructure businesses and assets. These companies will generally have long-term contracts and visible revenue streams from strong counterparties and seek to provide robust dividend yields to investors. The investments are diversified geographically and by energy sub-sectors, which primarily consist of: 1) the power sector, including electric power generated from renewable sources (solar, wind, hydro and waste-to-energy) and from natural gas, while excluding coal-generated power, 2) the midstream sector, including energy transportation and storage, and 3) the utility sector.
Mark Florian, Head of the Global Energy & Power Infrastructure team within BlackRock Real Assets, said: “The success of the fundraise reflects the search for diversified returns in a yield-starved environment, which continues to be front of mind for investors. Our strong off-market sourcing capabilities are differentiated by a disciplined investment approach focused on creating an optimized risk-adjusted return for our investors and a tailored solution for our partners and their customers. This philosophy has led to strong investment deployment and origination that includes multiple repeat partnerships with great companies, and we believe this strategy will continue to create many investment opportunities for our Funds.”
BlackRock Alternative Investors is designed to serve investors today and tomorrow as they seek outperformance in real estate, infrastructure, private equity, credit, hedge funds and alternative solutions. We strive to bring our investors the highest quality investments by drawing upon our global footprint, superior execution capabilities and position as a preferred partner.
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of December 31, 2019, the firm managed approximately US$7.43 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com/corporate.
About BlackRock Real Assets
In today’s dynamic and complex global investing market, we seek to help our clients’ access real assets that could help meet their investment goals by providing a distinct range of well defined, outcome orientated strategies, along the investment risk - return spectrum.
Our dedicated teams of industry and sector specialists deliver global reach, with deep local expertise. They have decades of relevant experience, are deeply embedded in their operating industries by sector and geography and have developed strong partnership networks over time. BlackRock’s culture of risk management, knowledge sharing, and investment discipline sets us apart and underpins all that we do. With over 400 professionals in 27 offices managing over US$50 billion in client commitments as of December 31, 2019, BlackRock Real Assets partners with clients to provide solutions tailored to individual portfolio needs such as income, growth, liquid or balanced real assets outcomes.
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Valuation risk
The Fund will be exposed to securities and other assets that will not have readily assessable market values. The valuation of such securities and other assets is inherently subjective and subject to increased risk that the information utilised to value such assets or to create the price models may be inaccurate or subject to other error. Due to a wide variety of market factors and the nature of the securities and assets to which the Fund will be exposed, there is no guarantee that any value determined will represent the value that will be realised on the eventual disposition of the Fund’s investments or that would, in fact, be realised upon an immediate disposition of such investment.
Concentration Risk
Investment risk is concentrated in specific sectors, countries, currencies or companies or because the Fund has only a small number of investments. This means the Fund is more sensitive to any localised economic, market, political or regulatory events. Concentrated investment exposure by the Fund could magnify the other risks to which the Fund is exposed.
Redemption risk
The Fund’s investments are generally illiquid and therefore an investment in the Fund is intended for long-term investors able to accept the risks associated with an illiquid investment and who are able to commit their funds for the duration of the Fund Redemptions, to the extent they are permitted, may be limited, postponed or altogether suspended in certain circumstances.
Lack of available investments
The Fund will be competing for exposure to investments in a highly competitive market, against other funds, as well as individuals, financial institutions, strategic players and other investors, some of which may have greater resources than the Investment Manager. There can be no assurance that the Fund will be able to locate, attain and exit investments that satisfy its investment objectives, or that the Fund will be able to fully invest its committed capital.
Restriction on Withdrawal
The Fund is not intended to be a short-term investment and has no certainty of returns. Commitments to the Fund are generally not transferable or redeemable and Investors will be committed to the Fund for its duration and may not be able to withdraw from their participation prior to the expiry of the Fund.
Risks associated with ownership and operation of real estate assets
The Fund may be exposed to risk of loss arising from, or relating, to the ownership, operation or management of any real estate in which it has an interest. Although the Fund seeks to mitigate these risks through the diligence process and otherwise, there can be no assurance that it will be able to avoid or effectively mitigate any such risks, which could have a material adverse effect on the Fund’s returns.
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This material has been created for use by prospective Professional Investors in the Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, Malta, Netherlands, Norway, Portugal, Spain, Sweden.
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For Investors in the UK: In the UK this document is directed only at persons who are professional clients or eligible counterparties for the purposes of the Financial Conduct Authority’s Conduct of Business Sourcebook. The opportunity to invest in the Fund is only available to such persons in the UK and this document must not be relied or acted upon by any other persons in the UK.
For Investors in Switzerland: For Qualified Investors only. This document is marketing material. This document shall be exclusively made available to, and directed at, qualified investors as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended ("CISA"). The Global Energy & Power Infrastructure Fund III is domiciled in United States, Cayman Islands, and Luxembourg. The Fund has not been registered with the Swiss Financial Market Supervisory Authority (FINMA). Representative in Switzerland is BlackRock Asset Management Switzerland Limited, Bahnhofstrasse 39, CH-8001 Zurich and the Paying Agent in Switzerland is State Street Bank International GmbH, München, Zweigniederlassung Zürich, Beethovenstrasse 19, CH -8002 Zürich. The Fund’s confidential Private Placement Memorandum and/or any other offering materials and the annual and semi-annual reports, if applicable, of the Fund/s are available free of charge from the representative in Switzerland. Investors should read the fund specific risks in the Prospectus and any other offering material.
