BlackRock Global Infrastructure Fund IV Raises US$4.5 Billion at First Close

Post to Reddit

Fourth vintage of global diversified infrastructure fund seeks to capitalize on the long-term trends of Decarbonization, Decentralization, and Digitalization

First closing secures commitments representing over half of targeted fundraise

NEW YORKBlackRock Alternatives (“BlackRock”), through its Infrastructure business, has raised US$4.5 billion in initial investor commitments for BlackRock Global Infrastructure Fund IV (“Infra IV” or the “Fund”), achieving over half of its targeted size at first closing. The Fund, which invests in essential infrastructure assets globally, secured initial commitments from a diverse group of institutional investors, including public and private pension funds, sovereign wealth funds, insurance companies and family offices. These clients are based around the world, including from the United States, Asia, Europe and the Middle East. Over 75 percent of the commitments in the Fund are from investors who have invested in prior vintages of the strategy.

The Fund is the fourth vintage of BlackRock’s flagship global diversified infrastructure equity fund series and builds on the strategy of the Global Energy & Power Infrastructure Funds. Infra IV seeks to deliver resilient cashflow and long-term capital appreciation to investors and is managed by the same global team of more than 60 infrastructure experts as its three predecessor funds. The group is led by Mark Florian and a senior team with 20 years of average industry experience,1 most of whom have been investing together for over a decade.

Demand for investment in infrastructure – essential for energy, industry, transport and other basic needs – is expected to significantly increase over the long term.2 Leveraging the team’s expertise, including unique sourcing, innovative deal construction, and active management, as well as BlackRock’s global platform, Infra IV seeks to build a diversified portfolio of essential, contracted infrastructure assets and businesses worldwide that are well-positioned to capitalize on three long-term, structural trends being accelerated by the global energy transition – Decarbonization, Decentralization and Digitalization (“3Ds”).3 Guided by the 3Ds, Infra IV will target investments across five sectors: Energy & Environmental, Low Carbon Power, Regulated Utilities, Transportation & Logistics, and Digital Infrastructure.

Over the coming decades, the energy transition will impact every part of the global economy, presenting significant investment opportunities for infrastructure investors.4 The Fund’s portfolio management team has deep experience investing in a range of infrastructure assets aligned with the transition, including carbon capture, renewable power, energy efficiency and renewable fuels. Infra IV will continue to target investments in climate solutions,5 while also supporting the infrastructure needed to ensure a stable, affordable energy supply during the transition.

“Since the inception of our funds 14 years ago, we have continually evolved our franchise alongside the growing market opportunity in infrastructure created by the changing ways we live, work, and connect,” said Mark Florian, Global Head of Diversified Infrastructure. “The positive initial response from our investors is a testament to BlackRock’s differentiated sourcing capabilities, disciplined investment approach and commitment to creating value for our clients.”

Infra IV, which is targeting $7.5 billion, succeeds Global Energy & Power Infrastructure Fund III (“GEPIF III”) and recognizes that the global energy transition is driving changes in many sectors beyond energy and power. GEPIF III held a final close of US$5.1 billion in 2020 and has since fully deployed its investors’ capital into companies and projects across the global power, midstream, utility, digital and transportation sectors. These investments include, among others: Vanguard Renewables, a U.S.-based producer of renewable natural gas from agriculture and organic food waste; GasLog, a global provider of more efficient liquefied natural gas shipping services; Vopak, the operator of critical industrial storage facilities and shipping terminals; Calisen, a leading owner and installer of smart meters in the UK; Kellas Midstream, the owner and operator of key midstream energy infrastructure; and Navigator CO2, a developer of industrial-scale carbon capture pipeline system.

“Driven by long-term structural trends and macroeconomic conditions – as well as investors’ growing interest in strategies that allow them to help drive the global energy transition forward – infrastructure investing will continue to be an important component of many of our clients’ portfolios as well as a key growth driver for BlackRock,” said Anne Valentine Andrews, Global Head of BlackRock Infrastructure & Real Estate. “The success of Infra IV’s fundraise to date reflects this strong investor demand for an asset class that can provide income, inflation-mitigation and diversification against a challenging macro environment.”

BlackRock Alternatives’ infrastructure platform currently manages over US$50 billion in client assets across infrastructure equity, infrastructure debt, listed securities and solutions strategies.6 The team of over 230 infrastructure specialists offers investors proven global investment sourcing and sophisticated solutions to customize, manage and scale infrastructure exposure across sectors and asset classes. BlackRock is also an early mover in energy transition investing, having started investing in renewable power in 2012. The infrastructure platform has since built a leading suite of strategies designed to help clients invest in climate solutions and accelerate the transition to a low carbon economy.

About BlackRock Alternatives

BlackRock Alternatives serve investors seeking outperformance in real estate, infrastructure, private equity, credit, hedge funds and alternative solutions. We strive to bring our investors the highest quality investments by drawing upon our global footprint, superior execution capabilities and position as a preferred partner. BlackRock manages $313 billion in alternative investments and commitments on behalf of clients worldwide as of September 30, 2022.

RISK WARNINGS

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.

Infrastructure Funds. Infrastructure Funds invest exclusively or almost exclusively in equity or debt, or equity or debt related instruments, linked to infrastructure assets. Therefore, in addition to risks associated with investment in such equity or debt instrument, the performance of an Infrastructure Fund may be materially and adversely affected by risks associated with the related infrastructure assets including construction and operator risks, environmental risks, legal and regulatory risks; political or social instability; governmental and regional political risks; sector specific risks; interest rate changes; currency risks; and other risks and factors which may or will impact infrastructure and as a result may substantially affect a fund’s aggregate return. Investments in Infrastructure assets are typically illiquid and investors seeking to redeem their holdings in an Infrastructure Fund can experience significant delays and fluctuations in value.

Liquidity Risk. The Fund’s investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the Fund may not be able to realise the investment at the latest market price or at a price considered fair.

Valuation risk. The Fund will be exposed to securities and other assets that will not have readily assessable market values. The valuation of such securities and other assets is inherently subjective and subject to increased risk that the information utilised to value such assets or to create the price models may be inaccurate or subject to other error. Due to a wide variety of market factors and the nature of the securities and assets to which the Fund will be exposed, there is no guarantee that any value determined will represent the value that will be realised on the eventual disposition of the Fund’s investments or that would, in fact, be realised upon an immediate disposition of such investment.

Lack of available investments. The Fund will be competing for exposure to investments in a highly competitive market, against other funds, as well as individuals, financial institutions, strategic players and other investors, some of which may have greater resources than the Investment Manager. There can be no assurance that the Fund will be able to locate, attain and exit investments that satisfy its investment objectives, or that the Fund will be able to fully invest its committed capital.

Redemption risk. The Fund’s investments are generally illiquid and therefore an investment in the Fund is intended for long-term investors able to accept the risks associated with an illiquid investment and who are able to commit their funds for the duration of the Fund Redemptions, to the extent they are permitted, may be limited, postponed or altogether suspended in certain circumstances.

Important Information

Third Party Websites: BlackRock is not responsible for any information on third party websites nor any inaccuracies on third party sites. Please contact the media contacts listed above with any questions.

This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID Rules) only and should not be relied upon by any other persons.

In the UK and Non-European Economic Area (EEA) countries: this is Issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 02020394. For your protection telephone calls are usually recorded. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.

In the European Economic Area (EEA): this is Issued by BlackRock (Netherlands) B.V. is authorised and regulated by the Netherlands Authority for the Financial Markets. Registered office Amstelplein 1, 1096 HA, Amsterdam, Tel: 020 – 549 5200, Tel: 31-20-549-5200. Trade Register No. 17068311 For your protection telephone calls are usually recorded.

For information on investor rights and how to raise complaints please go to https://www.blackrock.com/corporate/compliance/investor-right available in Italian.

This document is marketing material.

For distribution in the European Economic Area (EEA): This material has been created for use by prospective Professional Investors in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Ireland, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Sweden.

As at the date of this document, the Fund has been notified, registered or approved (as the case may be and howsoever described) in accordance with the local law/regulations implementing the AIFMD for marketing to professional investors into the above-mentioned member state(s) of the EEA (each a “Member State”).The fund may terminate marketing at any time. Investors should understand all characteristics of the Fund’s objective and read the Fund’s Private Placement Memorandum before investing.

For Investors in Germany: 
Shares of the Fund may in particular not be distributed or marketed in any way to German retail or semi-professional investors if the Fund is not admitted for distribution to these investor categories by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht).

For Investors in the UK: In the UK this document is directed only at persons who are professional clients or eligible counterparties for the purposes of the Financial Conduct Authority’s Conduct of Business Sourcebook. The opportunity to invest in the Fund is only available to such persons in the UK and this document must not be relied or acted upon by any other persons in the UK.

For Investors in Switzerland: 
For Qualified Investors only. This document is marketing material. 
This document shall be exclusively made available to, and directed at, qualified investors as defined in Article 10 (3) of the CISA of 23 June 2006, as amended, at the exclusion of qualified investors with an opting-out pursuant to Art. 5 (1) of the Swiss Federal Act on Financial Services ("FinSA"). 
For information on art. 8 / 9 Financial Services Act (FinSA) and on your client segmentation under art. 4 FinSA, please see the following website: www.blackrock.com/finsa.

For investors in Israel: BlackRock Investment Management (UK) Limited is not licensed under Israel's Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 5755-1995 (the “Advice Law”). No action has been taken or will be taken in Israel that would permit a public offering or distribution of the products mentioned in this document to the public in Israel. The products mentioned in this document have not been approved by the Israel Securities Authority. In addition, the products mentioned in this document are not regulated under the provisions of Israel’s Joint Investment Trusts Law, 5754-1994 (the “Joint Investment Trusts Law”). This document has not been approved by the Israel Securities Authority and will only be distributed to Israeli residents in a manner that will not constitute "an offer to the public" under sections 15 and 15a of the Israel Securities Law, 5728-1968 (the "Securities Law") or section 25 of the Joint Investment Trusts Law, as applicable.

This document and the products mentioned herein are being offered to those categories of investors listed in the First Addendum (the “Addendum") to the Securities Law, ("Institutional Investors"); in all cases under circumstances that will fall within the private placement or other exemptions of the Joint Investment Trusts Law, the Securities Law and any applicable guidelines, pronouncements or rulings issued from time to time by the Israel Securities Authority. This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 5755-1995. This document does not constitute an offer to sell or solicitation of an offer to buy any securities, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person or persons in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person or persons to whom it is unlawful to make such offer or solicitation.

For existing investors: You have received this document because, according to our records, you are currently an existing investor within the fund. If you are not an investor in the named fund or you are not the intended recipient or have received this document in error, please notify the sender immediately and destroy the message in its entirety (whether in electronic or hard copy format), without disclosing its contents to anyone.

In the United States, Distributed by BlackRock Investments, LLC

In Canada, For use with Permitted Investors Only

In Brazil, this private offer does not constitute a public offer, and is not registered with the Brazilian Securities and Exchange Commission, for use only with professional investors as such term is defined by the Comissão de Valores Mobiliários.

In Chile, the sale of each fund not registered with the CMF is subject to General Rule No. 336 issued by the SVS (now the CMF). The subject matter of this sale may include securities not registered with the CMF; therefore, such securities are not subject to the supervision of the CMF. Since the securities are not registered in Chile, there is no obligation of the issuer to make publicly available information about the securities in Chile. The securities shall not be subject to public offering in Chile unless registered with the relevant registry of the CMF.

IN MEXICO, FOR INSTITUTIONAL AND QUALIFIED INVESTORS USE ONLY. INVESTING INVOLVES RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL. THIS MATERIAL IS PROVIDED FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER OR SOLICITATION TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SHARES OF ANY FUND OR SECURITY. This information does not consider the investment objectives, risk tolerance or the financial circumstances of any specific investor. This information does not replace the obligation of financial advisor to apply his/her best judgment in making investment decisions or investment recommendations. It is your responsibility to inform yourself of, and to observe, all applicable laws and regulations of Mexico. If any funds, securities or investment strategies are mentioned or inferred in this material, such funds, securities or strategies have not been registered with the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores, the “CNBV”) and thus, may not be publicly offered in Mexico. The CNBV has not confirmed the accuracy of any information contained herein. The provision of investment management and investment advisory services (“Investment Services”) is a regulated activity in Mexico, subject to strict rules, and performed under the supervision of the CNBV. These materials are shared for information purposes only, do not constitute investment advice, and are being shared in the understanding that the addressee is an Institutional or Qualified investor as defined under Mexican Securities (Ley del Mercado de Valores). Each potential investor shall make its own investment decision based on their own analysis of the available information. Please note that by receiving these materials, it shall be construed as a representation by the receiver that it is an Institutional or Qualified investor as defined under Mexican law. BlackRock México Operadora, S.A. de C.V., Sociedad Operadora de Fondos de Inversión (“BlackRock México Operadora”) is a Mexican subsidiary of BlackRock, Inc., authorized by the CNBV as a Mutual Fund Manager (Operadora de Fondos), and as such, authorized to manage Mexican mutual funds, ETFs and provide Investment Advisory Services. For more information on the Investment Services offered by BlackRock Mexico, please review our Investment Services Guide available in www.blackrock.com/mx. This material represents an assessment at a specific time and its information should not be relied upon by the you as research or investment advice regarding the funds, any security or investment strategy in particular. Reliance upon information in this material is at your sole discretion. BlackRock México is not authorized to receive deposits, carry out intermediation activities, or act as a broker dealer, or bank in Mexico. For more information on BlackRock México, please visit: www.blackRock.com/mx. BlackRock receives revenue in the form of advisory fees for our advisory services and management fees for our mutual funds, exchange traded funds and collective investment trusts. Any modification, change, distribution or inadequate use of information of this document is not responsibility of BlackRock or any of its affiliates. Pursuant to the Mexican Data Privacy Law (Ley Federal de Protección de Datos Personales en Posesión de Particulares), to register your personal data you must confirm that you have read and understood the Privacy Notice of BlackRock México Operadora. For the full disclosure, please visit www.blackRock.com/mx and accept that your personal information will be managed according with the terms and conditions set forth therein. BlackRock® is a registered trademark of BlackRock, Inc. All other trademarks are the property of their respective owners.

For investors in Central America, these securities have not been registered before the Securities Superintendence of the Republic of Panama, nor did the offer, sale or their trading procedures. The registration exemption has made according to numeral 3 of Article 129 of the Consolidated Text containing of the Decree-Law No. 1 of July 8, 1999 (institutional investors). Consequently, the tax treatment set forth in Articles 334 to 336 of the Unified Text containing Decree-Law No. 1 of July 8, 1999, does not apply to them. These securities are not under the supervision of the Securities Superintendence of the Republic of Panama. The information contained herein does not describe any product that is supervised or regulated by the National Banking and Insurance Commission (CNBS) in Honduras. Therefore, any investment described herein is done at the investor’s own risk. This is an individual and private offer which is made in Costa Rica upon reliance on an exemption from registration before the General Superintendence of Securities (“SUGEVAL”), pursuant to articles 7 and 8 of the Regulations on the Public Offering of Securities (“Reglamento sobre Oferta Pública de Valores”). This information is confidential and is not to be reproduced or distributed to third parties as this is NOT a public offering of securities in Costa Rica. The product being offered is not intended for the Costa Rican public or market and neither is registered or will be registered before the SUGEVAL, nor can be traded in the secondary market. If any recipient of this documentation receives this document in El Salvador, such recipient acknowledges that the same has been delivered upon his request and instructions, and on a private placement basis.

In Peru, this private offer does not constitute a public offer, and is not registered with the Securities Market Public Registry of the Peruvian Securities Market Commission, for use only with institutional investors as such term is defined by the Superintendencia de Banca, Seguros y AFP.

In Uruguay, the Securities are not and will not be registered with the Central Bank of Uruguay. The Securities are not and will not be offered publicly in or from Uruguay and are not and will not be traded on any Uruguayan stock exchange. This offer has not been and will not be announced to the public and offering materials will not be made available to the general public except in circumstances which do not constitute a public offering of securities in Uruguay, in compliance with the requirements of the Uruguayan Securities Market Law (Law Nº 18.627 and Decree 322/011).

For investors in the Caribbean, any funds mentioned or inferred in this material have not been registered under the provisions of the Investment Funds Act of 2003 of the Bahamas, nor have they been registered with the securities regulators of Bermuda, Dominica, the Cayman Islands, the British Virgin Islands, Grenada, Trinidad & Tobago or any jurisdiction in the Organisation of Eastern Caribbean States, and thus, may not be publicly offered in any such jurisdiction. The shares of any fund mentioned herein may only be marketed in Bermuda by or on behalf of the fund or fund manager only in compliance with the provision of the Investment Business Act 2003 of Bermuda and the Companies Act of 1981. Engaging in marketing, offering or selling any fund from within the Cayman Islands to persons or entities in the Cayman Islands may be deemed carrying on business in the Cayman Islands. As a non-Cayman Islands person, BlackRock may not carry on or engage in any trade or business unless it properly registers and obtains a license for such activities in accordance with the applicable Cayman Islands law.

Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.

This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer. If you are an intermediary or third-party distributor, you must only disseminate this material to other Professional Investors as permitted in the above specified jurisdictions and in accordance with applicable laws and regulations.

THE INFORMATION CONTAINED HEREIN, TOGETHER WITH THE PERFORMANCE RESULTS PRESENTED, IS PROPRIETARY IN NATURE AND HAS BEEN PROVIDED TO YOU ON A CONFIDENTIAL BASIS, AND MAY NOT BE REPRODUCED, COPIED OR DISTRIBUTED WITHOUT THE PRIOR CONSENT OF BLACKROCK.

© 2022 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES are trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.

____________________
1 BlackRock, 15 August 2022. Members are subject to change. Representative of professionals with titles of Directors or above. 
2 BlackRock Investment institute and World Bank, 2017. “Infrastructure: taking the long views.” October 2022. https://www.blackrock.com/corporate/literature/market-commentary/weekly-investment-commentary-en-us-20221010-infrastructure-taking-the-long-view.pdf 
3 2022 Global Real Assets Outlook. January 2022. https://www.blackrock.com/ca/institutional/en/literature/whitepaper/2022-global-real-assets-outlook.pdf 
4 The IEA estimates that $125 trillion of investment is needed globally by 2050 to reach net zero, including $4 trillion per year into renewable power. “Net Zero by 2050,” International Energy Agency, May 2021, https://www.iea.org/reports/net-zero-by-2050 
5 Such as renewable energy and energy efficiency, which may include wind, solar and waste-to-energy power production, as well as smart metering 
6 AUM as of October 2022.

Media contacts

Christopher Beattie (AMRS)
+1 646 231-8518
christopher.beattie@blackrock.com

Venetia Hendy (EMEA)
+44 777 649 6563
venetiaceleste.hendy@blackrock.com

Source: BlackRock