Key Takeaways
- • TPG announced the final close of its climate-focused strategies, Rise Climate II and the Global South Initiative, raising $10.4 billion across the two funds and related vehicles.
- • The Global South Initiative hit its target of $2.5 billion in commitments at final close, including an initial $500 million from UAE-backed climate investment platform ALTÉRRA.
- • 31% of commitments to TPG's climate funds came from investors new to the firm, according to the company.
- • TPG's inaugural Rise Climate fund closed in 2022 at $7.3 billion, and the Global South Initiative was launched at COP28 in December 2023.
Summary
Global alternative asset manager TPG has announced the final close of its climate-focused strategies, Rise Climate II and the Global South Initiative, raising $10.4 billion across the two funds and related vehicles, according to ESG Today.
TPG launched its Rise Climate strategy in 2021, targeting climate-related investments that span growth equity to value-added infrastructure. The strategy focuses on three thematic areas: clean electrons, including renewable energy, grid and electrification, and commercial and industrial decarbonization; clean molecules and materials, including sustainable fuels and low-carbon building materials; and negative emissions, including environmental commodities, carbon markets and carbon removal solutions. The firm closed its inaugural Rise Climate fund in 2022 at $7.3 billion and subsequently launched Rise Climate II in 2023.
At the COP28 climate conference in December 2023, TPG announced the Global South Initiative, aimed at accelerating climate solutions across Global South emerging markets by attracting long-term private equity capital. The strategy's initial commitments included $500 million from ALTÉRRA, a UAE-backed climate investment platform, in addition to capital from TPG Rise Climate II. At final close, the strategy reached its $2.5 billion commitment target.
TPG said 31% of commitments to the climate funds came from investors new to the firm. TPG CEO Jon Winkelried attributed the fundraising to client recognition of secular trends, including rising power demand, the reindustrialization of major economies, and the reshaping of global supply chains, which he said are driving an unprecedented need for capital. He added that the firm's Climate franchise is well positioned to meet that need and build on momentum within its portfolio.
TPG launched its Rise Climate strategy in 2021, targeting climate-related investments that span growth equity to value-added infrastructure. The strategy focuses on three thematic areas: clean electrons, including renewable energy, grid and electrification, and commercial and industrial decarbonization; clean molecules and materials, including sustainable fuels and low-carbon building materials; and negative emissions, including environmental commodities, carbon markets and carbon removal solutions. The firm closed its inaugural Rise Climate fund in 2022 at $7.3 billion and subsequently launched Rise Climate II in 2023.
At the COP28 climate conference in December 2023, TPG announced the Global South Initiative, aimed at accelerating climate solutions across Global South emerging markets by attracting long-term private equity capital. The strategy's initial commitments included $500 million from ALTÉRRA, a UAE-backed climate investment platform, in addition to capital from TPG Rise Climate II. At final close, the strategy reached its $2.5 billion commitment target.
TPG said 31% of commitments to the climate funds came from investors new to the firm. TPG CEO Jon Winkelried attributed the fundraising to client recognition of secular trends, including rising power demand, the reindustrialization of major economies, and the reshaping of global supply chains, which he said are driving an unprecedented need for capital. He added that the firm's Climate franchise is well positioned to meet that need and build on momentum within its portfolio.
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