Blackstone targets $8bn for energy transition and digital infrastructure credit strategy
Blackstone is targeting at least $8bn for the latest vintage of its private credit strategy focused on renewable energy and digital infrastructure, as the alternative asset manager continues to expand its financing activities across sectors benefiting from the energy transition and AI boom, according to a report by Bloomberg.
Blackstone is planning to raise a minimum of $8 billion for its latest private credit strategy, which focuses on renewable energy and digital infrastructure. According to Bloomberg, the fourth iteration of the fund will provide loans to companies operating in energy security, power and utilities, data centers, and semiconductor financing. The report quotes unnamed sources familiar with the matter, but Blackstone has not yet commented on the fundraising efforts.
The previous fund in the series raised $7.1 billion in 2023, and as of June 30, it had achieved a 15% net internal rate of return. The new fund comes at a time when Blackstone is increasing its exposure to infrastructure supporting the rapid expansion of AI. Data centers, power generation, and related infrastructure have become key contributors to the firm's investment performance, with nine out of its ten best-performing investments linked to areas like data centers, energy, power, and large language models.
Blackstone's fundraising drive is taking place amidst continued institutional demand for private credit. While retail investor demand has slowed down, institutions have continued to allocate capital to the asset class. The firm's overall fundraising momentum has stayed strong, with Blackstone raising over $260 billion during the 12 months through the latest period, a 24% increase from the preceding 12 months. CFO Michael Chae reported that the firm's fundraising momentum remains robust.
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