Blackstone announced that funds managed by Blackstone Energy Partners (Blackstone) have committed $400 million to lead a strategic investment in Xpansiv Limited (Xpansiv), the premier market-infrastructure platform for global carbon and environmental commodities.
Xpansiv connects buyers and sellers of environmental commodities and provides market data for voluntary carbon offsets, renewable energy credits (RECs), and low-carbon fuels, each of which are critical elements of global decarbonization. Xpansiv’s growing ecosystem supports companies seeking to meet environmental and emissions reduction goals.
Bilal Khan, Senior Managing Director at Blackstone, said: “We believe environmental commodities are a critical new asset class that must scale exponentially to meet climate change mitigation targets pledged by governments, companies, and entire industries. Xpansiv is a leader in this space, and we are delighted to provide the capital and resources to help them further expand their offerings and accelerate their growth.”
David Foley, Global Head of Blackstone Energy Partners, 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. Xpansiv has a first-mover advantage, and Blackstone’s investment will enable them to capitalize upon that lead, creating 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.”
“Blackstone’s support of the Xpansiv vision for commodity markets that value ESG is a major milestone and the beginning of a new chapter for the company,” said Xpansiv CEO Joe Madden. “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.”
“We’re excited about this long-term commitment from Blackstone—proof of their ongoing investment in climate solutions,” said Xpansiv Chief Strategy Officer Nathan Rockliff. “This partnership will support our strategic path to accelerate our growth in global commodity markets following the acquisitions of SRECTrade, HVB, and OTX in 2021, and our investment in APX, the leading provider of registry infrastructure for energy and environmental markets.”
Blackstone’s capital will enable Xpansiv to continue driving growth across both organic initiatives and future acquisitions. The transaction continues Blackstone’s recent thematic investments in the energy-transition and climate-solutions spaces, which include Legence and Sphera.
Perella Weinberg Partners LP served as financial advisor, and Morrison & Foerster LLP and Clifford Chance LLP served as legal counsel to Xpansiv. Kirkland & Ellis and Clayton Utz served as legal counsel to Blackstone.
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