BlackRock Seeks $7B For New Global Renewable Power Fund: Report

BlackRock Inc (NYSE:BLK) plans to raise up to $7 billion for its fourth Global Renewable Power Fund.

The fund, which focuses on projects in Organisation for Economic Co-operation and Development nations, might invest in wind and solar power and other green technology like batteries and grid infrastructure, reported Reuters.

The U.S. and the European Union introduced significant financial backing for clean energy to help curb carbon emissions in the fight against global warming, which has fueled the movement, added the report.

David Giordano, global head of climate infrastructure at BlackRock, told Reuters that the demand from institutional investors to support such projects has grown in recent years as more want to align their portfolios with the shift to a low-carbon economy.

"You have folks now that are really trying to focus their portfolio construction around the different sub-sectors in infrastructure," Giordano added.

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BlackRock is targeting between $5 billion and $7 billion for its fourth fund after $4.8 billion was raised for its predecessor, which closed in April 2021.

According to Giordano, the fund may contemplate co-investments and make 18 to 22 investments in various initiatives, both in their early stages and those already developed.

Price Action: BLK shares closed lower by 0.25% at $678.23 on Wednesday.