Blackstone Seeks to Raise $7 Billion for Green Energy Credit Fund

(Bloomberg) -- Blackstone Inc. is seeking to raise $6 billion to $7 billion for its latest green-energy credit fund, according to people with knowledge of the matter.

The alternative-asset manager has begun discussing the vehicle, dubbed Blackstone Green Private Credit Fund III, with potential investors, one of the people said, requesting anonymity to discuss private talks. 

The company may ultimately raise more than $7 billion, depending on investor demand. The effort, led by Robert Horn, aims to deliver net returns of 13% or more, one of the people said. 

A representative for New York-based Blackstone declined to comment. 

Blackstone in January launched a renewable-energy lending strategy as part of its commitment to invest $100 billion in green projects over the next decade. At the time, the firm said it had established a Sustainable Resources Credit Platform to focus on lending to companies that are expanding solar energy to the residential sector, providing renewable electricity generation and storage services, and working on other decarbonization efforts. 

The effort targets investments in both investment-grade and junk-rated debt, as well as preferred and convertible securities, it said. 

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