Private equity giant TPG Capital raises $5.4 billion for new climate fund
Private equity giant TPG this morning said it raised $5.4 billion for the inaugural round of its TPG Rise Climate fund.
Why it matters: Per the New York Times, it's the "largest climate-focused fund in the world." And there's more coming.
- "TPG Rise Climate 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 company said.
Driving the news: The fund is backed by major investors including Allstate, AXA, The Hartford, but also corporate giants like Google parent Alphabet, Bank of America, Dow, GM, Nike and others.
How it works: The fund intends to take a broad approach to its financing, ranging from growth equity to "value-added infrastructure."
- It will focus on a handful of wide sectors including clean energy, decarbonized transport, climate-friendly agriculture and cleaner industrial practices.
The big picture: It's the latest sign of new private-sector capital flowing into climate-friendly companies and projects.