- BlackRock Inc (NYSE:BLK) will establish a perpetual infrastructure strategy to help companies transition to lower-carbon business models over time.
- Over half of the strategy will be allocated to Europe initially.
- BlackRock had initially planned 35% - 40% of its investments in Europe, Financial Times reported.
- The perpetual capital strategy will start with money in the “single-digit billions” from a few cornerstone investors, BlackRock said, with plans to grow it significantly, the report mentioned.
- The strategy will pursue investments in energy transition and security, digital and community infrastructure, sustainable mobility, and the circular economy.
- It will seek to deploy capital into fully businesses such as utilities and end-to-end renewable energy infrastructure players, as well as data centers, grid digitization technologies, battery storage systems, and natural gas storage and transport facilities adaptable to incorporate hydrogen.
- The report noted perpetual infrastructure offering is being pitched to long-term investors as a source of stable returns and a hedge against inflation.
- BlackRock intends to launch underlying open-ended investment vehicles and will be seeking founding partners in 2H of 2022. The open-ended structures will provide the ability to continuously raise and invest capital over the life of the strategy.
- Price Action: BLK shares closed 1.47% higher at $599.90 on Wednesday.
- Photo Via Company
