BlackRock has raised $4.5bn (€4.6bn) at the first close of its latest global infrastructure fund.
The capital raised for the BlackRock Global Infrastructure Fund IV (Infra IV) is more than half of the $7.5bn the fund is expecting to raise by its final close.
Infra IV’s predecessor, Global Energy & Power Infrastructure Fund III, raised $5.1bn at its final close in 2020.
As previously reported, New Mexico State Investment Council approved a $100m commitment to Infra IV, a fund with a core-plus/value-add strategy seeking a net internal rate of return of at least 10% with a 7% current yield component.
BlackRock said the fund secured initial commitments from a diverse group of institutional investors, including public and private pension funds, sovereign wealth funds, insurance companies and family offices.
These clients are based worldwide, including from the US, Asia, Europe and the Middle East, the manager said, adding that “over 75% of the commitments in the fund are from investors who have invested in prior vintages of the strategy”.
Infra IV will target investments across energy and environmental, low carbon power, regulated utilities, transportation and logistics, and digital infrastructure.
Mark Florian, a managing director at BlackRock and global head of diversified infrastructure, said: “Since the inception of our funds 14 years ago, we have continually evolved our franchise alongside the growing market opportunity in infrastructure created by the changing ways we live, work, and connect.
“The positive initial response from our investors is a testament to BlackRock’s differentiated sourcing capabilities, disciplined investment approach and commitment to creating value for our clients.”
Anne Valentine Andrews, global head of BlackRock infrastructure and real estate, said: “Driven by long-term structural trends and macroeconomic conditions – as well as investors’ growing interest in strategies that allow them to help drive the global energy transition forward – infrastructure investing will continue to be an important component of many of our clients’ portfolios as well as a key growth driver for BlackRock.
“The success of Infra IV’s fundraise to date reflects this strong investor demand for an asset class that can provide income, inflation-mitigation and diversification against a challenging macro environment.”
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