Exclusive: BlackRock-Temasek JV raises $1.4B for first fund
Illustration: Natalie Peeples/Axios
Decarbonization Partners, a joint venture between BlackRock and Temasek, closed its debut fund with $1.4 billion.
Why it matters: The tie-up between two of the world's biggest investors is putting heavy financial power behind startups aiming to tackle the climate change crisis head-on.
The big picture: Decarbonizing the global economy requires building tons of new infrastructure, from green steel mills, to novel energy storage, to battery and hydrogen production plants.
- Those expensive projects often struggle to raise money as they expand from pilots to commercialization.
The latest: Decarbonization Partners is bringing serious capital and investment influence to that challenging stage of growth by targeting late-stage venture capital and growth equity investments with its inaugural fund.
Case in point: The fund's portfolio companies include battery recycler Ascend Elements; silicon battery materials maker Group14; hydrogen producer Monolith; and thermal energy storage startup Antora.
- "Addressing the climate crisis requires innovation at scale, as well as significant and sustained financial resources," Temasek CEO Dilhan Pillay said in a statement. "No single entity can do it on their own."
Driving the news: Decarbonization Partners closed Fund I this month, concluding a two-year raise that exceeded the fund's initial $1 billion target.
- It's invested in seven companies so far and ultimately expects to back 15-20 as lead and follow-on.
- The fund is being managed by BlackRock. Investors include Allstate, BBVA, KIRKBI, Mizuho Bank, MUFG Bank, and TotalEnergies.
👀 What we're watching: Decarbonization Partners said at its launch in 2021 that it would raise a series of late-stage venture and growth equity funds. We're keeping an eye out for what follows Fund I.
