Global alternative asset firm TPG announced today the first close of its climate solutions-focused strategy, TPG Rise Climate, with commitments reaching $5.4 billion. TPG launched the fund earlier this year, and with a hard cap of $7 billion, expects to hold a final close by the end of 2021.
Subscribers to the new fund included several of the world’s largest institutional investors, as well as several leading multinational companies.
Jim Coulter, TPG Founding Partner and Executive Chairman and Managing Partner of TPG Rise Climate, said:
“It’s a time of both peril and possibility. Climate change is a societal risk but also a generational investment opportunity. Leveraging our deep experience in impact investing, we believe TPG Rise Climate can play a positive role in catalyzing capital to combat climate change. The partnership of leading investment institutions and major corporations funding TPG Rise Climate signals a growing business community commitment to engaging in this existential issue.”
TPG Rise Climate aims to build a portfolio of companies that can enable carbon aversion in a quantifiable way, combining impact capital and its business building skills to grow the range of commercially viable climate technologies. Investments will focus on several climate sub-sectors, including clean energy, enabling solutions, decarbonized transport, greening industrials, and agriculture and natural solutions.
The climate strategy forms part of TPG Rise, the firm’s global impact investing platform. Including the new close, the platform manages over $11 billion in assets.
TPG also announced the launch of the TPG Rise Climate Coalition, comprised of more than 20 leading global companies that have done extensive work building sustainability and climate action into their businesses. The coalition will meet regularly to accelerate knowledge, investment opportunities, and best practices. Members of the coalition include Alphabet, Apple, Bank of America, Boeing, GE, General Motors and Nike.
Hank Paulson, former U.S. Treasury Secretary and TPG Rise Climate’s Executive Chairman, said:
“TPG Rise Climate includes a unique group of global institutional and corporate investors that are united by capital, innovation, and accountability. This new blend of capital and broad commitment to action is a meaningful acknowledgment of the opportunity to make a difference in the trajectory of climate change. The Rise Climate Coalition brings together leading global businesses in a shared commitment to harness the rigor of TPG’s investment process to unlock technologies, scale solutions, and deliver broad impact. Together, we can catalyze climate-focused capital to accelerate and scale climate solutions of tomorrow.”