BlackRock’s alternatives arm has raised €415m to invest in a portfolio of global private infrastructure projects.
BlackRock Alternatives said the capital raised at the close of its Private Infrastructure Opportunities European Long Term Investment Fund (PI ELTIF) exceeded the fund’s initial fundraising target.
PI ELTIF focuses on direct co-investment opportunities allowing individual clients to invest alongside a broad range of institutional infrastructure managers, the manager said.
The fund will target sectors including transportation and logistics; power and utilities; energy; telecommunications; environmental and social infrastructure with long-term contracted revenue streams.
BlackRock Alternatives said at least 50% of the fund’s portfolio will invest in infrastructure co-investments located in Europe.
Serge Lauper, global head of BlackRock infrastructure solutions, said: “We believe private infrastructure assets have a sizeable role to play in wealth portfolios, particularly in a volatile market environment, thanks to their diversification properties and long-term investment horizon.
“Infrastructure investments also have the potential to hedge some of the effects of inflation. Looking ahead, as infrastructure financing needs to increase, we expect to see growing demand for private capital investment in infrastructure projects over the long term.”
West Lockhart, the head of wealth and family offices for BlackRock Alternatives Specialists EMEA, said: “The successful fundraise for the BlackRock Private Infrastructure ELTIF is testament to increasing client appetite for private markets, particularly infrastructure, an asset class which can have a tangible impact on local economies.
“We believe the ELTIF vehicle can play a vital role in helping broaden individual investor access to alternatives. We’re delighted to be delivering these investment opportunities to wealth clients across Europe today and we look forward to evolving our offering even further next year.”
The latest fundraise follows the first BlackRock Private Equity Opportunities ELTIF, which closed in April last year, the manager said, adding that it intends to launch two additional private-equity-focused ELTIF strategies next year.
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