Blackstone has raised $8.7 billion for Blackstone Energy Transition Partners V, a follow on to a strategy the firm wrapped up less than two years ago. At about 55 percent larger than the previous fund, which closed at $5.6 billion in February 2025, the new vehicle also includes a $150 million commitment from Blackstone, according to David Foley, the firm's global head of energy transition.
Foley described a market full of shakeups but also openings. "The last several years have had a lot of dislocations with geopolitical events, rapid growth of artificial intelligence and a regulatory environment that really pivoted quite a bit with elections," he said, adding that mispriced assets can create attractive entry points. As he put it, "We really leaned into investments."
The strategy casts a wide net across the energy ecosystem while generally excluding oil companies. Foley said the fund targets hard assets like power plants and transmission lines, equipment makers, and service and related tech providers.
About one quarter of the capital has already been put to work across six investments. That includes Flow Control Holdings, which supplies components for liquid cooling in data centers. Among them is Dresser Utility Solutions, which Blackstone funded; the company produces meters, regulators, and gear used to fix infrastructure serving gas and water utilities, and Blackstone has likewise put money into Kindle Energy and Viridon.
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Nearly one third of the money committed to the new fund came from first time investors with this team, Foley said, pointing to the performance of prior funds.
As of June 30, Foley said the net internal rate of return for Blackstone Energy Partners III was 33%. He also pointed to Aypa Power - a battery storage platform the firm is in the process of selling to Brookfield Asset Management - noting it has returned more than six times cost and that the transaction is expected to return over $2 billion to Blackstone. That outcome pushes Blackstone Energy Partners III's distributed to paid in capital, or DPI - cash returned relative to what investors put in - to around two times. For context, a DPI of one means investors have received every dollar back; anything above that reflects net profit returned.
Blackstone is betting that surging electricity demand will require more capital for new transmission lines and for upgrades and maintenance on the existing grid, Foley said. "We certainly like grid related investments," he noted. "We look at businesses with patent protection for equipment and that don't just sell into new build construction, but also have some long term repair and maintenance contracts."
The bottom line: Blackstone is channeling fresh capital into grid focused infrastructure and adjacent suppliers, with early deployment already underway. For portfolios watching energy transition flows, this is a sizable pool aimed at the wires, plants and equipment that keep power moving.
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