Blackstone is targeting at least $8bn for the latest vintage of its private credit strategy focused on renewable energy and digital infrastructure, according to Private Equity Wire. The publication reported that Bloomberg cited unnamed people familiar with the matter.
Target: at least $8bn for a fourth fund iteration
The unnamed people said the vehicle is the fourth iteration of the fund and will provide loans to businesses operating across energy security, power and utilities, data centres, and semiconductor financing, according to Private Equity Wire. Blackstone has reportedly not commented on the fundraising, according to the same report.
Prior vintage: $7.1bn raised in 2023, with a reported 15% net IRR as of 30 June
The previous fund in the series raised $7.1bn in 2023, according to the people cited in the report. The people also said that prior fund had generated a 15% net internal rate of return as of 30 June, according to Private Equity Wire.
Focus areas: energy transition and AI-linked infrastructure
The report said Blackstone continues to expand its financing activities across sectors benefiting from the energy transition and AI boom. The new vehicle comes as Blackstone continues to increase its exposure to infrastructure supporting the rapid expansion of AI.
Data centres, power generation, and related infrastructure have become significant contributors to the firm’s investment performance, with nine of its 10 best-performing investments linked to areas including data centres, energy, power, and large language models, according to the report.
Demand and fundraising momentum cited in the report
Blackstone’s fundraising drive comes against a backdrop of continued institutional demand for private credit, according to the report. While retail investor demand has moderated, institutions have continued to allocate capital to the asset class, according to the same report.
The firm’s overall fundraising momentum has remained strong, according to the report. Blackstone raised more than $260bn during the 12 months through the latest period, representing a 24% increase from the preceding 12 months, according to chief financial officer Michael Chae.
Private credit is widely known as a non-bank lending category that has grown as institutional investors allocate to privately negotiated loans.
