Blackstone Invests US$400m in ESG Commodity Exchange
The private equity giant has announced it will pour US$400 million into Xpansiv, a platform that lets investors trade assets tied to the energy transition, such as carbon offsets and renewable energy credits.
The money will be used to drive growth via both organic initiatives and future acquisitions, Xpansiv said.
"This partnership will help us solidify our leading position in carbon and leverage our platform to scale markets and products to accelerate the energy transition across renewable energy, digital fuels, and beyond. We're absolutely thrilled with the partnership," he said.
Blackstone Energy Partners global head David Foley said:
"As a leading private equity investor in the dynamic energy transition market, we proactively seek out companies with entrepreneurial management teams that are well positioned to benefit from fundamental long-term trends."
"As more corporations make net-zero commitments, there is an increasing need to efficiently connect them with, and indirectly provide funding for, the most efficient, high-quality developers of CO2 reduction projects."
Foley said that Xpansiv has the first-mover advantage, and Blackstone's investment will enable it to create a uniquely positioned company with ownership of critical software, technology, and a scalable exchange for trading voluntary carbon offsets and related environmental products.
"We believe this market will experience exponential growth over the next decade," he concluded.
Earlier this year, Xpansiv attempted to raise between $550 million and $600 million through an ASX listing, which would have valued the company at more than $2 billion.
Source: Financial Standard