Blackstone has invested $5.4bn (€5.1bn) in infrastructure assets in 2023 to date, according to the firm.
Among the notable investments is the acquisition of a 19.1% stake in NIPSCO, a US natural gas and electric company headquartered in Indiana, for $2.15bn.
“We are in the process of closing on a 19.1% non-controlling stake in NIPSCO for $2.15bn with an additional equity commitment of $250m to fund ongoing capital requirements,” said Sean Klimczak, CEO of Blackstone’s infrastructure business. “We expect to close this transaction sometime this quarter.”
Blackstone’s infrastructure business, which is generating net returns of 17%, is now valued at $40bn and is growing twice the pace the firm originally anticipated.
Blackstone is primarily focused on investing in infrastructure assets in North America and Europe. The firm typically invests $1.5bn of equity per transaction, but it has also made deals with equity investments that are several times larger than this.
Klimczak said that Blackstone sees the best prospects for future infrastructure investment in four main sectors: energy, transportation, water/wastewater, and digital. Examples of these types of investments include regulated utilities, transmission lines, pipelines, renewables, roads, rail, airports, and ports.
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