Finance  -  July 28, 2021

TPG Closes on $5.4B in Climate Fund

TPG Rise Climate announced July 27 the closing of $5.4 billion in subscriptions to its inaugural fund, bringing the total amount of assets in TPG’s portfolio to over $11 billion.

The climate investing arm of TPG Rise uses its capital funding to invest in entrepreneurs and businesses building commercially viable climate technologies.

TPG Rise Climate set a hard cap of $7 billion in total capital committed and expects to hold a final close in the fourth quarter of 2021. Its funding will be directed at five climate sub-sectors: clean energy, enabling solutions, decarbonized transport, greening industrials and agricultural and natural solutions.

The climate fund received subscriptions from an investor base that includes Allstate, AXA, The Hartford, Ontario Teachers' Pension Plan Board, Public Investment Fund, Public Sector Pension Investment Board, School Employees Retirement System of Ohio, Silk Road Fund, State of Michigan Retirement System, Universities Superannuation Scheme (USS), and Washington State Investment Board.

Investors in TPG’s climate fund will also have access to the TPG Rise Climate Coalition to exchange industry knowledge, investment opportunities and best practices.

“It’s a time of both peril and possibility. Climate change is a societal risk but also a generational investment opportunity,” Jim Coulter, founding partner and executive chairman of TPG and managing partner of TPG Rise Climate, said in a statement. “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.”