BlackRock Real Assets has achieved a US$1.67 billion final fundraise for the Global Infrastructure Debt Fund (“GID” or the “fund”), inclusive of US$150 million in co-investments. The fund has seen commitments from over 20 institutional investors, including leading global insurance companies, public and private pension funds, and family offices, from the United States, Canada, Japan, and Korea, representing more than three times the initial fundraising target.
BlackRock Real Assets established its infrastructure debt investment capability in 2013 and has an extensive track record across both investment grade and high yield infrastructure debt. Today, the GID team manages US$16.6 billion in global client commitments, which represents approximately one quarter of BlackRock Real Assets’ total client commitments.
GID is BlackRock’s first commingled fund offering in the high-yield infrastructure debt market, complementing the firm’s existing capabilities across the capital structure in senior debt and equity. The fund sits alongside US$1.3 billion managed through investment grade commingled funds. GID targets infrastructure investments in essential real assets located primarily in developed markets and backed by visible cash flow streams. The fund’s focus on essential assets helps deliver uncorrelated income and portfolio resilience, especially amidst global market uncertainty resulting from the pandemic.
The successful fundraise demonstrates the continued appeal of infrastructure debt investments for institutional investors, due to their potential for attractive income and portfolio diversification benefits. With regulatory and budget pressures limiting traditional bank and government lending in infrastructure, the opportunity for private investment has increased, with institutions looking to partner with experienced firms such as BlackRock, whose scale and resources provides access to a global opportunity set.
Jeetu Balchandani, Global Head of Infrastructure Debt at BlackRock, commented, “We are delighted with the success of our inaugural high yield fundraise. It is a testament to the team’s ability to deliver strong performance for our clients, leveraging our unique direct origination capability to meet the ever-growing desire for resilient infrastructure asset exposure. The team is working hard to close several attractive investment opportunities across key sectors, including digital infrastructure, which has emerged as a star of the pandemic. With an extensive forward investment pipeline, we believe we are poised to take advantage of opportunities across all major markets.”
Anne Valentine Andrews, Global Head of BlackRock Real Assets, added, “As one of the largest infrastructure debt platforms in the world, we have natural and direct access to multiple origination channels and the ability to invest at scale to influence deal terms and pricing for the benefit of our clients. The Global Infrastructure Debt Fund continues to provide investors with the agility and resiliency they seek, which has made this an especially important fundraise through the pandemic.”
As one of the world’s largest dedicated infrastructure debt providers, BlackRock Infrastructure Debt seeks to be positioned as a preferred lender for sponsors and borrowers seeking custom fit financing solutions on a direct basis, leveraging the team’s 20+ years of buy- and sell-side experience across senior members to both structure and execute deals. BlackRock’s infrastructure debt platform is differentiated as a true fiduciary manager that exclusively invests third party capital, ensuring that client objectives are at the center of all investment decisions.
As of March 31, 2021, BlackRock’s Infrastructure Debt platform has invested in over 125 projects across 18 countries in 4 continents. The 28-person team is based in New York, London, Bogota, and Hong Kong, enabling access to diverse opportunities for clients across the globe.
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.
About BlackRock Real Assets
In today’s dynamic and complex global investing market, BlackRock Real Assets seeks to help clients access real assets that could help meet their investment goals by providing a distinct range of well defined, outcome orientated strategies, along the investment risk-return spectrum.
BlackRock Real Assets’ dedicated teams of industry and sector specialists deliver global reach, with deep local expertise. They have decades of relevant experience, are deeply embedded in their operating industries by sector and geography and have developed strong partnership networks over time. BlackRock’s culture of risk management, knowledge sharing and investment discipline sets BlackRock Real Assets apart and underpins all that they do. With over 390 professionals in 30 offices managing over US$63 billion in client commitments as of March 31, 2021, BlackRock Real Assets partners with clients to provide solutions tailored to individual portfolio needs such as income, growth, liquid or balanced real assets outcomes.
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.
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1 Based on third-party capital under management