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BlackRock completes final close for Renewable Income Europe Fund

11 August 2016

Image for BlackRock completes final close for Renewable Income Europe Fund

BlackRock Real Assets has completed the final close for its Renewable Income Europe fund with €650 million in commitments secured from more than 25 institutional investors in Europe and Asia.

The final close has exceeded the fund's original target of €500 million, which it says reflects strong investor demand for long-term income from the renewable power asset class.

Since Renewable Income Europe's first close in February 2016, it has invested approximately a quarter of client commitments in nine wind and solar projects across the UK and Ireland.

The fund's investment team aims to build a diversified portfolio of European wind and solar projects and sees the majority of opportunities for the fund coming from Western Europe.

Rory O'Connor, head of European Renewables Investment for BlackRock Real Assets and manager of the fund, said: "We are very pleased with the final close for the fund. Since 2012 BlackRock has invested in 80 wind and solar projects globally, and manages over $2.5 billion of equity assets in the renewable power sector."

BlackRock says institutional investors, including pensions schemes, struggle to generate sufficient return in the low growth and low rate environment, and many are turning to real assets to meet long-dated liabilities.

According to its 2016 'Rebalancing Survey', 60% of European investors intend to increase exposure to real assets.

Patrick Liedtke, head of BlackRock's Financial Institutions Group for EMEA added: "In an increasingly volatile market, real asset investments are ideally suited to institutions that have a long-time horizon, and are looking for income-producing assets with inflation-protection and low correlations.

"Renewable power provides further portfolio diversification by providing varying local drivers of return, such as those derived by wind and solar resource."

First published 11.08.2016

Lindsay.sharman@wilmingtonplc.com