Highlights

• US$1 billion to be allocated from ALTÉRRA Acceleration to BlackRock’s Climate Transition Oriented Private Debt strategy
• ALTÉRRA Acceleration and ALTÉRRA Transformation will also commit, in total, US$1 billion to invest in, or co-invest alongside of, BlackRock’s infrastructure equity business, including the BlackRock Global Infrastructure Fund IV and Climate Finance Partnership

BlackRock, a global asset manager, and ALTÉRRA, the world’s largest private investment vehicle for climate change launched at the World Climate Action Summit, today announced an innovative new partnership that will see US$2 billion invested in climate opportunities across BlackRock’s private debt and infrastructure equity strategies. The bespoke investment solution created for the partnership, “BlackRock Climate Transition Vehicle,” will be capitalized with investments from both ALTÉRRA Acceleration and ALTÉRRA Transformation.

BlackRock’s more than US$110 billion transition investing platform 1 offers clients choice across index, active and private markets. It is powered by the firm’s proprietary research, technology and analytics, corporate network, and sourcing capabilities.

Through the partnership, ALTÉRRA Acceleration will commit US$1 billion to BlackRock’s Climate Transition-Oriented Private Debt strategy (“CPD”), an innovative new private debt strategy focused on the low-carbon transition. Launched in October, CPD uses a proprietary climate transition ratings framework to evaluate and finance a range of middle market companies, primarily in Europe and the U.S., that demonstrate climate transition characteristics and are committed to reducing their carbon emissions. Its portfolio management team actively engages with the companies it finances to support the implementation of their decarbonization targets. The fund leverages and builds on BlackRock’s Global Private Debt platform and capabilities.

US$1 billion from ALTÉRRA Acceleration and ALTÉRRA Transformation will also be invested into transition-related infrastructure through BlackRock’s infrastructure equity strategies. This includes US$650 million from ALTÉRRA Acceleration committed to the BlackRock Global Infrastructure Fund IV (“Infra IV”) and related infrastructure co-investments. Infra IV invests in a diversified portfolio of essential infrastructure assets globally. This commitment to Infra IV reflects the fund’s track record of investing in decarbonization-related businesses globally.

In addition, US$350 million will be invested in infrastructure in the Global South. ALTÉRRA Acceleration has committed to co-invest US$100 million of that alongside BlackRock’s Climate Finance Partnership (“CFP”), a public-private finance vehicle focused on investing in climate-related infrastructure in emerging markets. BlackRock announced the final close of CFP at COP26 in Glasgow. Its blended finance structure utilized catalytic capital, including from governments and philanthropies, to mobilize a broader institutional fundraise and accelerate the flow of capital into climate infrastructure projects in emerging markets. ALTÉRRA Transformation has committed the remaining US$250 million in catalytic capital to a forthcoming BlackRock-managed strategy.

BlackRock has made more than 130 private markets transition investments in over 20 countries, including in emerging markets across Asia, Africa, Latin America and the Middle East. These include investments made by CFP into the largest onshore wind farm in Africa, an independent power producer and renewable electricity developer in the Philippines, an operator and developer of solarPV power projects in Thailand, and a distributed solar developer and energy company in Brazil, with a combined pipeline of 4 GW of renewable capacity.

The BlackRock Climate Transition Vehicle, backed by ALTÉRRA, will target similar opportunities,leveraging a robust pipeline sourced by BlackRock’s capital markets and private markets investmentteams and supported by the Transition Capital team, a unit BlackRock established in 2022 to sourceproprietary, transition-focused investment opportunities across asset classes and geographies.

ALTÉRRA aims to mobilize significant capital to create investment opportunities and develop innovative solutions in the Global South through partnerships with BlackRock and other institutional players.

Through the partnership, BlackRock will also make the UAE a focus for its transition and blended finance activities, investing in the continued growth of its asset management and advisory businesses in the country.

In announcing the new partnership, His Excellency Majid Al Suwaidi, Director General of COP28 and incoming Chief Executive Officer, ALTÉRRA, said:

“Our partnership with BlackRock is an important moment for ALTÉRRA and reflects our ambition to use this capital to mobilize at least US$250 billion of overall investment by 2030. BlackRock brings climate and industry-specific expertise and a broad variety of opportunities to invest in climate-related projects at scale. It is a high-caliber business which has committed to further enhancing its on the ground presence in the UAE. We look forward to collaborating closely with BlackRock as we invest to accelerate the transition to a new climate economy and a low carbon economy across markets globally.”

Larry Fink, Chairman and Chief Executive Officer, BlackRock, said:

“BlackRock is honored to have been selected to participate in this important initiative, which will shape the way climate finance evolves in the coming years. The launch of ALTÉRRA will itself not only help mobilize much needed capital to support the transition in the Global South, it can also serve as a blueprint for other sovereigns and private sector actors to replicate, partnering to help unleash the trillions of dollars needed in developed and emerging markets. We look forward to bringing our expertise in mobilizing private sector capital to enable its success.”