NEW YORK--(BUSINESS WIRE)--BlackRock Real Assets has successfully achieved a US$4.8 billion final close of Global Renewable Power Fund III (“GRP III” or the “Fund”) with commitments from over 100 institutional investors, including leading public and private pension funds, insurance companies, endowments, foundations and family offices from over 18 countries globally.
GRP III is the third vintage of BlackRock’s Global Renewable Power fund series and the fifth Fund overall, which invests in global climate infrastructure assets, primarily in renewable power generation, across Americas, Europe and Asia. GRP III seeks to deliver attractive risk-adjusted returns with positive and measurable environmental and social impact by investing across the spectrum of renewable power and supporting infrastructure globally, including energy storage and distribution and electrified transport. Its opportunity set reflects the evolving renewable energy market as well as investors’ growing interest in investments that support the transition to a low carbon economy.
The Fund has actively begun investing capital and to date has already completed three investments in Europe, Asia, and North America. These investments include onshore wind in Europe, solar in Asia, and distributed solar generation in the U.S., each project playing a vital role in the region’s road to net zero. GRP III follows GRP I, a 2012 vintage, and GRP II, a 2016 vintage, both of which are fully invested.
David Giordano, Global Head of BlackRock Renewable Power, commented, “We are delighted with the success of this fundraise, which is a testament to the strong global demand for renewable power assets and to our team’s ability to build resilient portfolios that help clients meet their financial and sustainability objectives. By sourcing, building, and optimizing assets throughout their lifecycle, we believe that renewable power has the potential to generate attractive risk adjusted returns and stable cash yields for investors with low correlation to the economic cycle.”
Jim Barry, Chief Investment Officer of BlackRock Alternative Investors and Global Head of BlackRock Real Assets, commented, “GRP III invests in the sustainable infrastructure of the future. As the world strives toward net zero carbon emissions by 2050, the transition will have dramatic impacts not only for public equities but for private markets as well, creating significant opportunities for front-footed investors. BlackRock is committed to growing its sustainable private market offerings across asset classes, including climate infrastructure.”
BlackRock’s Global Renewable Power platform has invested in over 250 wind and solar projects across 13 countries in 4 continents. The Global Renewable Power team consists of 54 professionals, with 20 years of investment and technical expertise. The team manages over US$9 billion of client capital, with an emphasis on globally diversified portfolios, measurable climate impact and differentiated sourcing.
BlackRock’s investment conviction is that integrating sustainability can help investors build more resilient portfolios and achieve better long-term, risk-adjusted returns. The GRP III fund has achieved the highest article 9 rating in line with European Sustainable Finance Disclosure Regulation2. As a fiduciary, BlackRock is committed to helping clients navigate the transition to a net zero world, in which the economy emits no more carbon dioxide than it removes from the atmosphere. As part of that commitment, BlackRock’s goal is to offer clients a full set of climate-oriented investment options across asset classes and geographies, including strategies that seek out new opportunities in climate innovation.
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About BlackRock Real Assets
In today’s dynamic and complex global investing market, BlackRock Real Assets seeks to help 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.
BlackRock Real Assets’ 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 BlackRock Real Assets apart and underpins all that they do. With over 390 professionals in 30 offices managing over US$60 billion in client commitments as of December 31, 2020, BlackRock Real Assets partners with clients to provide solutions tailored to individual portfolio needs such as income, growth, liquid or balanced real assets outcomes.
Disclosures
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
Infrastructure Funds. Infrastructure Funds invest exclusively or almost exclusively in equity or debt, or equity or debt related instruments, linked to infrastructure assets. Therefore, in addition to risks associated with investment in such equity or debt instrument, the performance of an Infrastructure Fund may be materially and adversely affected by risks associated with the related infrastructure assets including construction and operator risks, environmental risks, legal and regulatory risks; political or social instability; governmental and regional political risks; sector specific risks; interest rate changes; currency risks; and other risks and factors which may or will impact infrastructure and as a result may substantially affect a fund’s aggregate return. Investments in Infrastructure assets are typically illiquid and investors seeking to redeem their holdings in an Infrastructure Fund can experience significant delays and fluctuations in value.
Liquidity Risk. The Fund’s investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the Fund may not be able to realise the investment at the latest market price or at a price considered fair.
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.
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.
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.
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1 Source: BlackRock March 2021. Figures in terms of AUM
2 In order to be classified under Article 9, BlackRock’s investment products must meet the following criteria:
- Strategy must target Sustainable Investments and clearly disclose this in the product’s investment objective and policies.
- All holdings must comply with our Do No Significant Harm criteria.
- All holdings must comply with our Good Governance standards.
