Goldman Sachs Raises $1.6 Billion for Inaugural Private Markets Climate Fund
Goldman Sachs Asset Management (GSAM) announced today that it has raised more than $1.6 billion at the final close of its inaugural direct private markets strategy dedicated to investing in climate and environmental solutions, the Horizon Environment & Climate Solutions I.
GSAM stated that the fund will be the first in a series of “Horizon Funds,” targeting investments in key sustainability trends.
Ken Pontarelli, Head of Sustainable Investing for Private Markets at Goldman Sachs Asset Management, said:
“Today, as the imperative to transition to a more sustainable economic growth model gathers pace, we are excited to continue backing leading businesses in this space as they develop and scale the environmental and climate solutions of tomorrow.”
Managed by Goldman Sachs’ Sustainable Investing Group, the growth-oriented private equity strategy targets five key climate transition-related themes, including Clean Energy, Sustainable Transportation, Waste and Materials, Sustainable Food and Agriculture, and Ecosystem Services. GSAM stated that the themes represent sectors where it has observed secular demand and growth opportunity for cost-effective solutions needed by organizations looking to achieve their sustainability goals.
Horizon Climate is classified as Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR), the most stringent classification, indicating that the fund has sustainable investment as an objective.
Since launching the fund in 2021, GSAM has already committed nearly $1 billion, with investments in 12 portfolio companies in North America and Europe. Investments to date include markets and solutions ranging from lithium-ion battery manufacturing and sustainable packaging materials, to efficient agricultural water usage, and energy efficiency in commercial and industrial buildings.
Julian Salisbury, Chief Investment Officer for Asset & Wealth Management at Goldman Sachs, said:
“Horizon Environment & Climate Solutions I represents the transformative power of private capital to help scale cutting-edge technologies that will make a meaningful impact in the race to net zero.”