Blackstone’s energy-focused private equity business has invested $400m (€393m) in global commodities trading platform Xpansiv.
The capital commitment by Blackstone Energy Partners will help Xpansiv to progress its plan to expand organically and through acquisitions.
Xpansiv, a global marketplace for ESG-inclusive commodities, connects buyers and sellers of environmental commodities and provides market data for voluntary carbon offsets, renewable energy credits, and low-carbon fuels.
Bilal Khan, a senior managing director at Blackstone, said: “We believe environmental commodities are a critical new asset class that must scale exponentially to meet climate change mitigation targets pledged by governments, companies, and entire industries.
“Xpansiv is a leader in this space, and we are delighted to provide the capital and resources to help them further expand their offerings and accelerate their growth.”
David Foley, global head of Blackstone Energy Partners, said: “As more corporations make net-zero commitments, there is an increasing need to efficiently connect them with – and indirectly provide funding for – the most efficient, high-quality developers of CO2 reduction projects.
“Xpansiv has a first-mover advantage, and Blackstone’s investment will enable them to capitalise upon that lead, creating a uniquely positioned company with ownership of critical software, technology, and a scalable exchange for trading voluntary carbon offsets and related environmental products.”
Joe Madden, Xpansiv’s CEO, said: “This partnership will help us solidify our leading position in carbon and leverage our platform to scale markets and products to accelerate the energy transition across renewable energy, digital fuels, and beyond.”
Nathan Rockliff, Xpansiv’s chief strategy officer, said the partnership will support Xpansiv’s strategic path to accelerate growth in global commodity markets following the acquisitions of SRECTrade, HVB, and OTX in 2021, and the firm’s investment in APX.
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