BlackRock has raised $4.5 Billion out of an overall target of $7.5 billion for a new fund that will invest in infrastructure assets targeted at climate-focused projects, the asset manager has announced.
BlackRock, which is the largest asset management firm in the world with assets of around $8 trillion, stated that public and private pension funds as well as sovereign wealth funds, insurance companies, and family offices have invested in the new fund, which will go by the name Global Infrastructure Fund IV.
According to the asset manager, the new fund will be invested in five sectors: energy, low-carbon power, transport/logistics and digital infrastructure. This is to capitalize on the increasing trend towards decarbonization.
In 2020, its previous infrastructure fund raised $5.1 billion.
After facing backlash from lawmakers regarding its position on issues such as environmental, social, and governance (ESG), Larry Fink, Chief Executive Officer at BlackRock, defended his company’s energy investments.
BlackRock has been criticized by many in the low-carbon fuels debate. Environmentalists claim it doesn’t do enough to push for fossil fuel portfolio companies to change, while Republicans accuse it of banning energy stocks.
A Transition Capital unit was also created by the company in order to invest in global opportunities related to the shift to a low carbon economy.