Jul 19, 2021 - Energy & Environment

Generate Capital unveils one of the largest single private sustainability investments

Earth with a money sign in the center
Illustration: Sarah Grillo/Axios

Generate Capital, a sustainable infrastructure finance and development firm, this morning announced a $2 billion fundraise from major institutional investors.

Why it matters: It's a lot of money — company representatives are calling it among the largest single private investments in sustainability.

  • More broadly, it's the latest sign of growing private cash moving into clean technology project finance and companies.

Catch up fast: Generate Capital's announcement comes on the heels of Friday's news that the investment firm General Atlantic is raising $4 billion for a growth equity fund focused on climate technologies.

  • Axios' Dan Primack has more on that announcement here.

How it works: A suite of new and existing investors are behind Generate Capital's $2 billion, led by AustralianSuper and QIC with new investment from Harbert Management Corporation, Aware Super, and CBRE Caledon and others.

  • Generate Capital owns, operates and finances projects in the energy, waste, water and transportation sectors, and the new funding will also fuel expansion into areas like agriculture and smart cities.
  • The company calls itself a "one-stop shop," with services like construction finance and co-development of projects, to name just two.

The big picture: Getting the power, transportation, industrial, building and farming sectors on a low-carbon pathway will require a lot of cash.

  • The International Energy Agency's recent analysis of pathways to net-zero global emissions by 2050 projects that annual clean energy investment needs to more than triple by 2030 to around $4 trillion.
  • Government finance is crucial, "but ultimately the private sector will need to finance most of the extra investment required," IEA said.
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