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Alternative asset firm TPG announced this week the first close of $5.4 billion in subscriptions to its TPG Rise Climate fund, which attracted some of the world's largest institutional investors and multinational corporations.
TPG Rise Climate, the climate investing strategy of TPG's global impact investing platform TPG Rise, has set a hard cap of $7 billion in total capital commitments and expects to hold a final close in the fourth quarter of 2021.
The fund's first close received subscriptions from some of the world's largest institutional investors, including 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.
The institutional investors and the other partners that have subscribed to the TPG Rise Climate fund manage a total of over $3 trillion of assets globally, TPG said. The fund's investor base also includes participation from many multinational firms such as Alphabet, Apple, Bank of America, Boeing, Dow, GE, General Motors, Honeywell, and John Deere.
"It's a time of both peril and possibility. Climate change is a societal risk but also a generational investment opportunity," said TPG Founding Partner and Executive Chairman Jim Coulter, who is Managing Partner of TPG Rise Climate.
"Leveraging our deep experience in impact investing, we believe TPG Rise Climate can play a positive role in catalyzing capital to combat climate change," Coulter added.
Climate investments and funds are on the rise as many governments and corporations have pledged net-zero emissions by 2050 or sooner.
Last month, activist investor Engine No.1 said it would soon launch its first exchange-traded fund (ETF) as it extends its efforts to improve the environmental and social impacts of large U.S. corporations beyond supermajor ExxonMobil.
Engine No. 1's first ETF will be named Engine No. 1 Transform 500 ETF and will trade under the ticker VOTE, the activist investor said nearly a month after winning three board seats at ExxonMobil demanding that the U.S. oil giant start preparing for creating long-term value in the energy transition.
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com