Global alternative asset management firm TPG and United Arab Emirates-based ALTÉRRA have announced an aggregate $1.5 billion commitment to the next generation of TPG Rise Climate private equity funds, including its new Global South Initiative.
TPG is headquartered in Fort Worth and San Francisco, and ALTÉRRA is the world’s largest private investment vehicle for climate change action. ALTÉRRA was launched at the World Climate Action Summit at COP28, taking place Nov. 30 to Dec. 12 in the UAE.
“The combination of the UAE’s substantial commitments and TPG Rise Climate’s extensive experience scaling climate solutions globally has the potential to drive much-needed capital and expertise to the decarbonization challenge,” TPG Founding Partner and Executive Chairman and TPG Rise Climate Managing Partner Jim Coulter said in a statement. “The size and innovative structure of this new initiative will allow us to support a broader opportunity set of ready-to-scale climate companies and projects in the Global South. Working together, we can bring capital at scale to accelerate the transition to a low-carbon economy in the Global South and around the world.”
More on the Global South Initiative
The Global South Initiative will be managed by TPG and is purpose built to accelerate and attract institutional capital at scale by offering return enhancement to encourage private equity investments in high growth climate opportunities in the Global South, the partners said.
What is the Global South? It’s the nations that generally are regarded as having a relatively low level of economic and industrial development, and typically are located to the south of more industrialized nations.
The partners said the initiative will receive up to $500 million in innovative catalytic capital from ALTÉRRA TRANSFORMATION. Also, TPG Rise Climate will channel roughly $1 billion from its TPG Rise Climate II fund to co-invest alongside the initiative.
TPG said it will also raise additional commitments for the Global South Initiative from its broader network of limited partners.
The Global South Initiative will leverage TPG’s decades of experience investing across industries in the Global South. In the climate sector alone, TPG said it has driven more than $4 billion of investment in over 20 climate solutions companies across nearly 20 countries in the Global South.
In addition to the parties’ shared commitment to the new climate economy, the Fund is aligned with the pillars that underpin COP28’s Action Agenda, namely: Energy Transition, Industrial Decarbonization, Sustainable Living and Climate Technologies.
ALTÉRRA aims to create ‘a fairer climate finance system’
ALTÉRRA represents the next step in the UAE’s decades-long journey towards climate action and is dedicated to investing in the energy systems of tomorrow.
In addition to the Global South Initiative, ALTÉRRA will commit roughly $1 billion to TPG Rise Climate II from ALTÉRRA ACCELERATION. Rise Climate II will continue Rise Climate I’s strategy of pursuing private equity investments globally that are driving quantifiable carbon aversion across Rise Climate’s core climate sector themes—energy transition, green mobility, sustainable fuels, sustainable products and materials, and carbon solutions.
TPG said it’s targeting $10 billion in aggregate commitments across its Global South Initiative and TPG Rise Climate II.
“This partnership underscores ALTÉRRA’s steadfast commitment to accelerating the transition towards a new climate economy across the globe,” Majid Al Suwaidi, director general of COP28 and Incoming CEO of ALTÉRRA, said about the the partnership. “Together with TPG, a strong global investor with deep experience backing and scaling climate solutions, we believe the UAE brings world-class resources, expertise, and the track record necessary to catalyze climate action and mobilize capital to create a fairer climate finance system.”
“ALTÉRRA is committed to mobilizing third-party institutional capital towards leveling the playing field in climate finance,” Al Suwaidi added, “drawing significant investment at scale to the Global South. We look forward to working together to deliver meaningful change at this critical juncture.”
ALTÉRRA is a newly established climate focused investment manager in the Abu Dhabi Global Market, established by Lunate.
With a dedicated team of climate and investment professionals, ALTÉRRA said it invests its LPs capital in climate investment themes through fund investments and direct/co-investments.
Abu Dhabi-based Lunate is a global independent investment manager with 150 employees including 80 investment professionals, and Lunate invests through fund investments, direct and co-investments across asset classes, sectors and geographies.
More on TPG
TPG was founded in San Francisco in 1992, with $212 billion of assets under management and investment and operational teams around the world. It invests across a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions, and our unique strategy is driven by collaboration, innovation, and inclusion.
TPG Rise Climate is the dedicated climate investing strategy of TPG’s $18 billion global impact investing platform TPG Rise.
TPG Rise Climate pursues climate-related investments that benefit from the diverse skills of TPG’s investing professionals, the strategic relationships developed across TPG’s existing portfolio of climate-focused companies, and a global network of executives and advisers.
Recently, we told you about TPG’s acquisition of Forcepoint‘s Global Governments and Critical Infastructure cybersecurity business.
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