BlackRock, Temasek JV Fund Surpasses Target With $1.4 Billion Close

Decarbonization Partners, BlackRock’s joint venture with Singaporean state-owned investment firm Temasek, has surpassed its $1 billion fundraising target for its Decarbonization Partners Fund I with a final close of $1.4 billion.

The joint venture, which was founded in 2022, said that the fund drew in more than 30 institutional investors from 18 countries in North America, Europe and Asia Pacific, including pension funds, sovereign wealth funds, family offices, and insurance companies.

“This successful fundraise demonstrates the unique strength of our team and platform, which we’ve been building for the last two years,” Meghan Sharp, global head of Decarbonization Partners, said in a statement. “Decarbonization Partners was deliberately set up as a purpose-built entity that can uniquely convene and collaborate with key players in the climate ecosystem.”

Some of the investors in the fund include insurance firm Allstate, Spanish financial services company Banco Bilbao Vizcaya Argentaria, Japanese banks Mizuho Bank and MUFG Bank, and French oil and gas company TotalEnergies, as well as several Singaporean institutional investors.

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Decarbonization Partners aims to invest in private companies that support accelerating decarbonization and the transition to a net-zero economy. This includes late-stage venture capital and early-stage growth equity firms targeting de-risked technologies related to “clean energy, electrification, green materials and a circular, digital economy.”

The joint venture has so far completed capital investments in seven companies, which includes investments in sustainable materials, lithium-ion batteries, clean hydrogen, science-based carbon management services, low-emissions battery recycling, electric vehicle fleet management, and thermal energy storage for industrial applications.

“There is enormous demand for energy infrastructure as many countries seek to transition to lower-carbon sources of power while also achieving energy security,” BlackRock Chairman and CEO Larry Fink said in a statement. “Decarbonization Partners brings together the best of Temasek and BlackRock to identify generational investment opportunities in climate technology that we believe will help to bring down the green premium, enable a more affordable energy transition, and generate long-term financial returns for our clients.”