BlackRock Unveils Perpetual Infrastructure Strategy For Energy Transition, Security

BlackRock Inc 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.
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