More than 20 leading companies — including 3M, ADM, Apple, Bank of America, FedEx, General Motors, Honeywell, Nike, Smithfield Foods and TD Bank Group — have invested in TPG Rise Climate, the climate investing strategy of TPG’s global impact investing platform. TPG Rise Climate has announced its first-close of $5.4 billion in subscriptions to its inaugural fund.
According to TPG Rise Climate managing partner Jim Coulter, climate change is not just a societal risk but also a generational investment opportunity. “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,” he adds.
The multi-billion dollar climate impact investing fund will invest in the entrepreneurs and businesses building climate solutions around the world, TPG says. The fund is focusing on clean energy, enabling solutions, decarbonized transport, greening industrials, and agricultural and natural solutions.
TPG says that because its investor base includes “significant participation from many of the world’s leading multinational companies,” the fund is set apart from traditional private equity vehicles. To formalize collaboration and share insights among this group, TPG is forming the TPG Rise Climate Coalition. The group will convene regularly to exchange knowledge, investment opportunities, and best practices.
Other companies investing in the fund include Allianz, Allstate, Alphabet, AXA, Boeing, Dow, Exor, GE, John Deere, Michael R. Bloomberg, and Sumitomo Mitsui Banking Corporation. Institutional investors include 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.
TPG has set an upper limit of $7 billion on fundraising for TPG Rise Climate, the Wall Street Journal reported last week.
The results of a global poll of over 40 institutional investors recently indicated that climate change was the top issue on their minds, Environment + Energy Leader reported in May.
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