Anchor capital from UAE-based ALTÉRRA catalyzes substantial new third-party capital commitments
(BUSINESS WIRE)--Coinciding with the 79th session of the United Nations General Assembly and the start of New York Climate Week, TPG Rise Climate, the climate investing strategy of TPG’s global impact investing platform, today announced it has secured $1.25 billion in initial capital commitments for its new Global South Initiative strategy (“GSI”).
Launched in partnership with ALTÉRRA, the world's largest private investment vehicle for climate change action, GSI is designed to accelerate and attract institutional capital at scale by offering return enhancement to encourage private equity investments in high growth climate opportunities across the Global South. With the additional commitments announced today, TPG and ALTÉRRA are now joined in GSI by a broad and diverse set of institutional investors from across Asia and North America.
“GSI combines the power of the global TPG platform and the leadership of the TPG Rise Climate franchise to amplify the effects of catalytic capital,” said Jim Coulter, TPG Executive Chairman and a Managing Partner of TPG Rise Climate. “As heads of state and members of the global climate community gather in New York, there will be intense focus on driving tangible solutions for financing the new climate economy, particularly across the Global South. We are encouraged by the initial pace of activity and client engagement around a first-of-its-kind strategy for our industry and expect that pace to continue, as we anticipate significant additional capital commitments in the coming two quarters. We look forward to activating our GSI strategy as early as the fourth quarter of this year and are grateful for ALTÉRRA’s continued partnership in spearheading this important initiative.”
TPG and ALTÉRRA launched GSI at COP28 in Dubai, targeting $2.5 billion in total capital commitments. The initial $1.25 billion is inclusive of commitments from ALTÉRRA, which activate as TPG raises additional capital, TPG Rise Climate II, and third-party capital raised through a fund dedicated to the region. ALTÉRRA made its investment through its $5 billion Transformation Fund, which incentivizes investment flows in high-growth climate opportunities in underserved markets by providing catalytic capital.
“These commitments demonstrate ALTÉRRA’s early progress towards channeling scale capital to climate solutions across the Global South, through novel approaches to climate investing. Our catalytic capital is proving instrumental in incentivizing investment to underserved markets, and the strong positive reception to GSI thus far is a testament to the value and potential of our innovative strategy,” said CEO of ALTÉRRA, His Excellency Majid Al Suwaidi.
TPG has been making private equity investments in companies across the Global South for decades. In the climate sector alone, TPG has driven over $4 billion of investment in over 20 climate companies across nearly 20 countries in the Global South. Existing TPG Rise portfolio companies are conserving 6 million acres of wilderness through ecotourism across eight countries in Africa, delivering over 300 megawatts of renewable power in Chile, and leading passenger electric vehicle adoption in India.
For GSI, TPG has been leveraging its experience investing across Africa, South and Southeast Asia, and Latin America to develop a robust pipeline of potential investment opportunities across TPG Rise Climate’s core investing verticals, including Clean Electrons, Clean Molecules & Materials, and Negative Emissions.
About TPG Rise Climate
TPG Rise Climate is the dedicated climate investing strategy of TPG’s $19 billion global impact investing platform. 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 advisors. The fund takes a broad-based sector approach to investment types, from growth equity to value-added infrastructure, and focuses on climate solutions in the following thematic areas: clean electrons, clean molecules and materials, and negative emissions.
For more information, please visit www.therisefund.com/tpgriseclimate.
About ALTÉRRA
ALTÉRRA is the world’s largest private investment vehicle for climate finance. Launched at COP28 with a US$30 billion commitment from the UAE, ALTÉRRA aims to build innovative partnerships to mobilize US$250 billion globally by 2030 to finance the new climate economy and accelerate the climate transition.
ALTÉRRA's dual-arm structure enhances its impact: the US$25 billion Acceleration Fund directs capital towards projects crucial for accelerating the global transition to a net-zero and climate-resilient economy at scale. The US$5 billion Transformation Fund incentivizes investment flows in high-growth climate opportunities in underserved markets by providing catalytic capital.
Alterra Management Limited is duly licensed and authorized by the ADGM Financial Services Regulatory Authority under the Financial Services Permission No. 200001.
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