Market News

Blackstone Strengthens Its ESG Portfolio

Story Highlights

Continuing to make thematic investments in areas of energy transition and climate solutions, Blackstone commits to invest $400 million in an environmental commodities exchange platform. 

Alternative investment management company Blackstone Inc. (NYSE: BX) has revealed its plans to invest $400 million in Xpansiv Limited through funds managed by its energy-focused private equity business, Blackstone Energy Partners.

The investment is expected to boost Blackstone’s thematic investment portfolio in energy transition and climate solutions spaces.

Xpansiv is a market-infrastructure platform, which brings buyers and sellers of environmental commodities under one roof. It also provides market data for voluntary carbon offsets, renewable energy credits (RECs), and low-carbon fuels.

Xpansiv’s popularity is already on a rise. According to a Wall Street Journal report, as many as 150 customers joined Xpansiv’s exchange platform in the first quarter of 2022.

Blackstone believes that Xpansiv is well-positioned to benefit from opportunities that are arising due to climate change concerns. Government institutions, private players, and several industries have set targets to reduce their carbon footprint in the upcoming years.

Further, favorable government policies, promising investments in renewable energy space, technological developments, and growing awareness about reducing carbon footprint are increasingly drawing investors’ attention towards climate change investment products.

Blackstone’s Performance on TipRanks

According to TipRanks, the Street is cautiously optimistic about BX stock and has a Moderate Buy consensus rating based on seven Buys and four Holds. BX’s average price forecast of $144 implies 47.84% upside potential to current levels. The stock has lost 24.1% so far this year.

BX stock has a “Perfect 10” Smart Score on TipRanks. This indicates that the stock is likely to outperform the market.

Meanwhile, TipRanks data shows that financial bloggers are 100% Bullish on Blackstone, compared to the sector average of 60%.

Further, both hedge funds and retail investors are Very Positive about the stock. Per TipRanks, hedge funds have bought 787,900 shares of BX in the last quarter, and top retail investors’ holdings in the stock have gone up 6.5% in the last 30 days.

Parting Thoughts

Growing climate change concerns are paving new opportunities for players in the area. Xpansiv’s strong ecosystem is expected to strengthen Blackstone’s suite of thematic investments.

Read full Disclosure

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