Blackrock Debuts Climate Transition-Driven Private Debt Fund
BlackRock has entered the eco-friendly investment market, launching a new private debt fund aimed at companies seeking to achieve net zero emissions.
The Climate Transition-Oriented Private Debt Fund focuses on European and US middle market companies and assets in defensive sectors through direct lending, opportunistic, venture capital, and real asset debt.
The fund finances enterprises at various stages of converting to net zero emissions and utilizes climate transition selection criteria to ensure that borrowers display sufficient climate transition features using a proprietary Climate Transition Rating Framework.
According to BlackRock, the strategy responds to client demand for transition-oriented solutions. According to the firm’s global transition investor survey, 98% of investors have defined a transition investment aim for their portfolios, and 75% of institutional investors have net zero intentions.
Sonia Rocher, sustainable investing lead and portfolio manager, will oversee the fund.
“We are harnessing the breadth and experience of our global platform to deliver a quality credit portfolio that focuses on income. The strategy focuses on the transition to a low-carbon economy as one of several mega forces driving investment opportunities,” said James Keenan, BlackRock CIO.
BlackRock’s global private debt platform manages $84 billion in client assets.