Global alternative asset manager TPG announced the final close of its climate-focused strategies, Rise Climate II and the Global South Initiative, raising $10.4 billion across the two funds and related vehicles.
TPG launched its Rise Climate strategy in 2021, targeting climate-related investments spanning investment types from growth equity to value-added infrastructure, and focused on climate solutions in thematic areas including clean electrons, such as renewable energy, grid and electrification, and C&I decarbonization; clean molecules and materials, such as sustainable fuels and low carbon building materials, and; negative emissions, including environmental commodities, carbon markets and carbon removal solutions.
The firm closed its inaugural Rise Climate fund in 2022 at $7.3 billion, and subsequently launched Rise Climate II in 2023. At the COP28 climate conference in December 2023, TPG announced the launch of the Global South Initiative strategy, aimed at accelerating transformative climate solutions across Global South emerging markets by attracting long-term private equity capital.
The Global South Initiative strategy’s initial commitments included $500 million from UAE-backed climate investment platform ALTÉRRA, in addition to capital from TPG Rise Climate II. At final close, the strategy hit its target to reach $2.5 billion in commitments.
TPG said that 31% of the commitments to the climate funds came from investors that are new to the firm.
TPG CEO Jon Winkelried said:
“Our clients recognize the powerful secular trends of rising power demand, the reindustrialization of major economies, and the reshaping of global supply chains, which together are driving an unprecedented need for capital. Our Climate franchise is well-positioned to meet that need and build on the momentum within our portfolio.”
