Blackstone's Fifth Energy Transition Fund to Surpass Previous Size

Blackstone Aims for Larger Impact with New Energy Transition Fund

As global demand for sustainable energy solutions intensifies, Blackstone is positioning itself at the forefront of this transformative sector with its upcoming energy transition fund. The company's chief operating officer, Jon Gray, has shared that the fifth fund is anticipated to surpass its predecessor in size and expects a first close within months.

In a recent earnings call, Gray highlighted the burgeoning opportunities within the power and electrification ecosystem, stating that it is "creating enormous dealflow in this area." He further noted that the current fund is already approximately 80 percent committed, just a year and a half after its inception.

The previous fund, Energy Transition Partners IV, reached a hard cap closure at $5.6 billion in February 2025, as per the New Private Markets database. By the end of the year, it held $5.84 billion in committed capital and $3.12 billion available, alongside $4.44 billion in total investments and a multiple on invested capital (MOIC) of 1.6x, according to Blackstone's fourth-quarter earnings.

Initially called Energy Partners IV, the fund was renamed to emphasize its commitment to decarbonization in energy investments (source).

Earlier this month, Blackstone expanded its portfolio by acquiring Alliance Technical Group, an environmental testing and monitoring services firm. This acquisition is part of a broader investment strategy that includes firms such as Sediver, known for manufacturing toughened glass insulators, and Shermco, an electrical testing company, along with investments in natural gas power plants (source).

In the last quarter, Blackstone reported $646 million in net accrued performance revenues from its energy and energy transition investments, marking an increase from $568 million in the same period the previous year.