BlackRock Real Assets has completed the final close for its Global Renewable Power II fund (“GRP II”) with $1.65 billion in commitments secured from 67 institutional investors in North America, Europe and Asia. The final close has exceeded the initial fund target size of $1 billion reflecting strong investor demand for attractive, environmentally conscious total returns and stable cash yield available in the renewable power asset class.
GRP II has already invested almost 20% of client commitments in five wind and solar projects across the US, Norway and Japan. The strategy of the fund is to build a diversified, global portfolio of wind and solar projects.
David Giordano, Head of Renewable Power North America, APAC and Latin America at BlackRock and portfolio manager of the fund, said: “We are very pleased with the final close of GRP II, and its investment progress on behalf of our clients. Since 2012 BlackRock has invested in more than 100 wind and solar projects globally, and manages over $4.2 billion [1] of equity assets in the renewable power sector, through strategies designed to meet client needs and preferences. We have maintained the discipline of investing exclusively in renewable power, one of the most active sectors for deal flow in the growing infrastructure asset class.”
According to BlackRock’s 2017 Global Rebalancing Survey [2], 61% of global institutional investors intend to increase exposure to real assets. As institutional investors seek to generate sufficient return in the low return environment, many are turning to infrastructure and renewable energy assets to meet long-dated liabilities. Renewable power is gathering momentum globally. Advancements in technology and substantial cost improvements have helped to make renewable energy sources – particularly wind and solar – more competitive with fossil fuels and one of the most active sectors within infrastructure.
Jim Barry, Global Head of BlackRock Real Assets commented: “The increased flows we have seen into real asset investments reflects the strong demand from institutions for income-producing assets with lower correlations and a degree of inflation protection. The final close of GRP II, the largest global wind and solar fund, is testament to the philosophy and strength of BlackRock’s renewables investment platform. BlackRock was an early mover in identifying renewables as an attractive global fundamental growth story for infrastructure investors which is providing a flow of addressable investment opportunities that are relevant to our clients.”
