Blackstone closes $8.7 billion energy transition fund

Blackstone has successfully closed its fifth energy transition fund, Blackstone Energy Transition Partners V (BETP V), at a record $8.7 billion. This represents a 55% increase over its previous fund, which raised $5.6 billion.

The fund is targeting investments in power generation, electricity transmission, and energy efficiency. This expansion comes as the rise of artificial intelligence increases global demand for power and data center infrastructure. Since June, the fund has already deployed capital into several key transactions, including backing platform companies Kindle, Fisterra, and Viridon for electricity generation and transmission development.

Additionally, Blackstone has completed acquisitions in the energy efficiency sector, including Flow Control Holdings, Dresser Utility Solutions, and DarkVision. These companies provide services ranging from liquid cooling solutions for data centers to utility equipment and infrastructure inspection. Blackstone reported a historical net internal rate of return of 34% for its energy transition investments through June 30, 2026.