Blackstone, one of the largest private equity firms in the world, officially changed the name of its dedicated energy investment fund to include the phrase “energy transition” in 2022, having already ceased investing in oil and gas production five years earlier. The pivot toward a new energy future has not diminished interest in the fund. In mid-October, Blackstone announced that the fund pulled in $8.7 billion in investor money this year, reportedly turning away an additional $3 billion to stay under its maximum investment cap.
Blackstone’s is one of several energy transition funds at private equity firms that have consistently grown over the past decade. That growth has continued even as general climate-oriented investment has fallen over the last few years. Colloquially, “energy transition” refers to the shift from fossil fuels to renewable energy that is necessary to limit the worst impacts of climate change. But on Wall Street, the term can mean something a bit different. Some transition funds — including Blackstone’s — see opportunities for profit in natur... Read more
