Alternative asset manager Blackstone has announced that funds managed by Blackstone Energy Partners have committed $400 million to lead a strategic investment in Xpansiv Limited, a global marketplace for ESG-inclusive commodities.
Formed in 2019, Xpansive has exchanges in the US and Australia.
Blackstone’s capital will enable Xpansiv to continue driving growth across both organic initiatives and future acquisitions, according to a statement on Thursday.
The transaction continues Blackstone’s recent thematic investments in the energy-transition and climate-solutions space. In 2020, for instance, Blackstone acquired Therma Holdings (rebranded as Legence in 2022), a mechanical. electrical, and energy efficiency services company. Last year it also acquired Sphera, an ESG software, data, and consulting services firm, from Genstar Capital.
Xpansiv was revving up for an IPO on the Australian Stock Exchange in 2022. The plans were put on hold following an “unsolicited Private Equity proposal”, the Australian Financial Review had reported in May.
fronted Australian and offshore investors for an IPO, seeking funding for its APX acquisition and to refinance convertible notes, per a Financial Review report.
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 is critical to global decarbonization. Xpansiv’s growing ecosystem supports companies seeking to meet environmental and emissions reduction goals.
“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,” said Bilal Khan, Senior Managing Director at Blackstone.
“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,” he added.
Blackstone Energy Partners, Blackstone’s energy-focused private equity business, is a leading energy investor with a successful long-term record, having invested over $20 billion of equity globally across a broad range of sectors within the energy industry.