BlackRock closed its third global energy and power infrastructure fund at $5.1 billion, surpassing both its original target and hard cap.
The BlackRock Global Energy & Power Infrastructure Fund III is the largest alternative investment fundraise for the money management firm. The original target was $3.5 billion and the hard cap was $4.5 billion, a news release Wednesday said.
More than 70% of commitments came from investors in the prior fund. GEPIF II closed in June 2014 at $2.5 billion, a spokeswoman said.
GEPIF III targets high-quality and essential energy infrastructure businesses and assets. Investments are diversified geographically and by energy subsectors, including renewable power and utilities. Almost $2 billion of the fund has been committed so far, the spokeswoman said.
"The success of the fundraise reflects the search for diversified returns in a yield-starved environment, which continues to be front of mind for investors," Mark Florian, head of the global energy and power infrastructure team at BlackRock's real assets unit, said in the release. The team manages the fund.
The $27.9 billion New Mexico State Investment Council, Santa Fe, made a $50 million co-investment commitment to the fund in June. In November the $157.6 billion Texas Teacher Retirement System, Austin, committed $150 million the fund, and in September the $242.1 billion California State Teachers' Retirement System, West Sacramento, committed $250 million to GEPIF III.