Alternative asset manager Blackstone’s credit business, Blackstone Credit, has launched a sustainable resources platform that focuses on investing in and lending to renewable energy companies and those supporting the energy transition.
The dedicated credit platform seeks to address the growing challenges, investment needs and expertise required as governments and companies around the world commit to decarbonization at an accelerated pace. An estimated US$100 trillion, according to the 2021 IRENA World Energy Transitions Outlook, will be required through 2050 to decarbonize the global economy.
The platform is led by Robert Horn, who has been with Blackstone Credit since its founding, and has been named global head of the sustainable resources group for Blackstone Credit. Simon Hayden has joined the firm from EIG as a senior managing director in London to lead the sustainable resources activities in Europe.
The platform, which includes more than 30 investment professionals across North America and Europe and is supported by the portfolio operations teams at Blackstone, will also leverage the firm’s environmental, social and governance (ESG) expertise. Newly hired global head of ESG for Blackstone, Jean Rogers, the founder of the Sustainability Accounting Standards Board, and Rita Mangalick, head of ESG for Blackstone Credit, will advise investment teams, oversee ESG diligence and support other initiatives for the platform.
The platform will invest across the credit spectrum in investment- and non-investment-grade credit and preferred and convertible securities. It will focus on a broad range of sectors, including residential solar and home efficiency; renewable electricity generation and storage; products, services, technologies and natural resources that enable the energy transition; decarbonized transportation; sustainability linked loans; green financings that fund environmental projects; and other energy infrastructure investments.
“The launch of this platform demonstrates our conviction in the investment opportunities presented by the energy transition,” says Jon Gray, president and COO of Blackstone. “Companies globally are shifting to meet this demand. Private capital is essential to supporting decarbonization goals and our scale allows us to play a major role.”