Blackstone halfway to $6bn target for energy transition PE fund

Blackstone has raised $3.3 billion for its energy transition private equity fund – more than halfway towards the $6 billion target recorded in a November 2022 filing with the US Securities and Exchange Commission.

Blackstone Energy Transition Partners IV, however, “will be probably $4 billion plus” at final close, chief financial officer Michael Chae said in the firm’s second quarter results call in July.

Launched in 2021, BEP IV is an Article 8 fund under the SFDR and will be invested globally in energy infrastructure buyouts, with a particular focus on renewable generation assets.

At the end of Q2, Blackstone had valued its energy transition portfolio across all strategies at more than $20 billion. The firm closed Green Private Credit III above target at $7.1 billion last month. Blackstone has announced plans to invest $100 billion in energy and climate change solutions over the decade from 2022.

Blackstone’s energy transition portfolio “can be a lot bigger”, said Chae in the firm’s Q2 results call. “The size of the market is growing so quickly and investor desire for exposure to this is growing as well… The investors wanted it, [and] it can be very large, very scalable. And… the IRA in the US has made a big difference,” he added.