Investment manager Nuveen announced that it has raised commitments of approximately $200 million at the first close of its second global climate inclusion private equity strategy, aimed at investing in solutions addressing sustainable development challenges including climate change and inequality.

Nuveen’s second climate inclusion strategy will build on the firm’s first private equity impact strategy, launched in 2021. The initial strategy raised $218 at final close, and has invested in 8 global businesses since its launch.

According to Nuveen, the new fund will focus on climate inclusion around the world in key global growth markets, targeting investments seeking to mitigate climate change, provide access to basic financial services, and leverage relationships with low-income consumers to build resilience to climate change.

The company’s Global Climate private equity series meets the requirements of SFDR Article 9, and is a signatory to the Operating Principles for Impact Management.

Rekha Unnithan, Head of Private Equity Impact at Nuveen, said:

“We believe that climate change and inequality, two of the biggest challenges the world faces, can be addressed by commercial businesses. The changing regulatory environment and shifts in consumer sentiment means overcoming those challenges also presents a compelling investment opportunity. As a longtime leader in impact investing, we look forward to leveraging our years of experience and $1bn track record to target positive returns for our investors and the world we live in.”

The fund received commitments from a mix of global investors, including Danish pension fund Velliv.

Anders Stensbøl Christiansen, Chief Investment Officer at Velliv, said:

“At Velliv, we have been investing in Nuveen’s Impact funds for many years, as we believe that impact investing demonstrates how generating returns can go hand in hand with addressing the world’s challenges, whether they are social, environmental or a combination of both. Nuveen Private Equity Impact enables Velliv to achieve a global reach in our impact portfolio, delivering returns and measurable impact across several SDGs through both socially and environmentally focused investments.”