San Francisco-based global alternative asset manager TPG has announced the USD7.3 billion final close of TPG Rise Climate, the dedicated climate-related investing strategy of the USD114 billion private equity group’s TPG Rise global impact investing platform.
The firm said the strategy, which closed at its hard cap, had attracted “a unique blend of capital” from some of the world’s most prominent institutional investors and a diverse set of 28 industry-leading multinational corporations.
Since launching last year, TPG Rise Climate has been rapidly deploying capital through growth-stage investments in innovative climate solutions. Recent investments include backing the leading solar tracking company Nextracker, creating North America’s largest marketer and originator of carbon and environmental credits via the merger of Bluesource and Element Markets, and forming an innovative partnership with Tata Motors to lead the electrification of passenger mobility in India.
“We continue to be inspired by the climate innovation we are seeing across sectors and around the world. The climate crisis is accelerating and we are proud to be confronting it with substantial capital and action,” said Jim Coulter, TPG founding partner and managing partner of TPG Rise Climate.
“As technology opens new markets and methods in everything from batteries to biogas and solar to sequestration, we are energised by the decarbonisation opportunities ahead. With every investment, we remain committed to Rise’s mission of delivering exceptional returns alongside meaningful impact.”
As part of the USD14 billion TPG Rise global impact investing platform, TPG Rise Climate leverages the capabilities of Y Analytics, TPG’s public-benefit LLC dedicated to understanding, valuing, and managing the social and environmental impact of its investments. By using research and evidence to establish a company’s potential Carbon Yield, the TPG Rise Climate team is able to estimate the tons of carbon dioxide equivalent emissions that are avoided per dollar it invests.
“Our limited partners – both institutional investors and large multinational corporations – have joined us with a common purpose: to rapidly finance and scale climate solutions that meaningfully reduce or avert greenhouse gas emissions. It is a privilege to be working with our investors and climate innovators around the world to build a new net-zero economy,” said Hank Paulson, the former US Treasury Secretary and chairman/CEO of Goldman Sachs who is executive chairman of TPG Rise Climate.
TPG said that representatives of the 28 global corporations involved with the fund will convene at the first TPG Rise Climate Coalition meeting next month to share practical insights and progress on decarbonisation strategies. The Coalition’s objective is to scale climate technologies across industries through investment, innovation, and action.
“TPG is committed to leading the growth and evolution of impact investing and climate action in private equity,” says John Winkelried, CEO of TPG and a former co-president of Goldman Sachs. “The final close of TPG Rise Climate demonstrates the resonance of the Rise model, and that meaningful positive impact can be achieved alongside strong returns.”
He adds: “The investments we make and the insights we gain through TPG Rise and TPG Rise Climate give us the opportunity to drive social and environmental impact at scale and enhance our ESG performance both at the firm level and within our portfolio.”
