Blackstone raises $5.6B for latest energy transition fund

Blackstone Inc. has raised $5.6 billion for a fund dedicated to investing in the transition to cleaner energy, people familiar with the matter said.

The fund, Blackstone Energy Transition Partners IV, is about a third larger than its predecessor, according to the people, who asked not to be identified discussing confidential information. 

The firm has already struck several deals with money from the new fund. These include investments in companies such as Trystar, a provider of electrical power solutions, and Sediver, a maker of toughened glass insulators.

A representative for Blackstone declined to comment.

Blackstone is wagering that the world’s governments will continue to embrace cleaner forms of energy, even as global conflicts and the return of Donald Trump as US president refocus some minds on boosting oil and gas supplies. 

In September, Juergen Pinker, a senior managing director at Blackstone who leads its energy transition investments in Europe, told Bloomberg News that about $4.5 trillion a year was needed to reach net zero by 2050. This, he said, was creating huge investment opportunities from private capital providers. 

Blackstone’s global energy transition business is led by David Foley.