Blackstone Is Said to Target About $4.5 Billion for Energy Deals

(Bloomberg) -- Blackstone Group LP is targeting about $4.5 billion for its third fund that will make energy investments globally, according to people with knowledge of the matter.

Blackstone Energy Partners III is aiming to hold a first close in the second quarter, said the people, who asked not to be named because the information is private. The firm is targeting about the same amount gathered for the prior fund in 2015.

Blackstone’s energy team, led by David Foley, makes controlling equity investments in companies, assets and development projects in the energy and natural resources sector globally. The firm’s prior fund was producing a 1.3-times multiple on invested capital, before taking fees into account, and a 13 percent net internal rate of return as of March 31.

Blackstone keeps breaking fundraising records as investors search for better returns and flee more expensive alternatives. Total assets under management have reached a record $449.6 billion through a combination of fundraising and financial gains.

Matt Anderson, a spokesman for New York-based Blackstone, declined to comment.

To contact the reporters on this story: Sabrina Willmer in Boston at swillmer2@bloomberg.net, Heather Perlberg in Washington at hperlberg@bloomberg.net.

To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Vincent Bielski

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