BlackRock going after green infrastructure-focused IGIS PE in Korea
Multinational asset managing behemoth BlackRock is after Korea-based IGIS Private Equity Fund (IGIS PE) for its strength in offshore wind and solar power infrastructures.
BlackRock is said to be in the final stage of negotiation to take over IGIS PE’s stake from its IGIS Asset Management and its affiliates, according to industry sources on Sunday. Financial terms were not known.
IGIS PE specializes in investment in renewable energy infrastructures like wind and solar farms. The firm established KREDO, a unit for managing investment in renewable energy development and operations, in 2019 and created a fund worth 200 billion won ($174.6 million) in the same year together with state-run Korea Electric Power Industrial Development to invest in solar power and energy storage system (ESS) businesses. Last year, the PE firm partnered up with local environmental engineer SM E&C for investment in a 1.6-gigawatt offshore wind project.
BlackRock with $8.68 billion assets under management as of the end of 2020 would be returning to Korea after it sold off its unit on public fund investment to DGB Asset Management in March.
With IGIS PE under its arm, the U.S. fund could demand more green and sustainable commitments from Korean big companies Samsung Electronics, Naver, and Kakao, where it holds a sizable stake.
Larry Fink, the founder and CEO of BlackRock, in his annual letters sent to CEOs at the conglomerate’s units early last year, stressed on the importance of environmental, social, and governance (ESG) aspects in investment.
BlackRock recently created a $4.8 billion fund to invest in over 250 renewable power assets around the world. Over 100 institutional investors including public and private funds and insurance firms from 18 countries reportedly joined the fund. In Korea, the Korea Transportation Management pooled in 200 billion won from five local institutions to commit to BlackRock’s new fund.
The global asset manager is also raising $500 million for a climate fund, which will focus on investing in renewable power generation and transportation networks in developing countries.
Source : pulsenews
