Texas-based TPG and Toronto-based Brookfield Asset Management both announced their respective climate-focused funds on July 27 2021. These funds from TPG and Brookfield Asset Management act as private equity’s 13th and 14th mega-funds respectively.
TPG managed to land $5.4 billion in funding for the initial close of its Rise Climate Fund. The investment firm’s initial goal was to achieve $5 billion for the fund. This goal has now increased to $7 billion. The Rise Fund was established in 2016 in partnership with U2 lead vocalist Bono and billionaire internet entrepreneur Jeff Skoll. The fund was created with the aim of meeting the United Nations’ Sustainable Development Goals, a set of 17 global environmental goals that aim to be met by 2030. The fund aims to target areas like clean energy, decarbonized transport and agriculture solutions. The fund already has a range of sustainability investments, including plant-based food company Green Monday, environmental commodities company Element Markets and African wilderness protection agency Wilderness Holdings.
Brookfield Asset Management announced the first closing of $7 billion in funding for its climate-focused fund. The fund is called the Brookfield Global Transition Fund and aims to achieve a net-zero carbon economy. The fund’s mandate is to invest in clean energy and sustainability strategies to help carbon-intensive countries comply with Paris Agreement standards. It will be hard-capped at $12.5 billion. According to Pitchbook data, if the fund achieves its target, it will be the largest fund devoted to climate change and sustainability.
Just the tip of the iceberg - major finance players get stuck into investing green1
TPG and Brookfield Asset Management are joining a wave of private equity and venture capital investors focused on investing in innovations that aim to mitigate greenhouse gas emissions. In July, growth equity firm General Atlantic announced the formation of its BeyondNetZero team. The team focused on targeting growth equity investments focused on climate change. The firm has a target of $4 billion for an upcoming climate change related fund.