Apollo announced the formation of Apollo Clean Transition Capital (ACT Capital), which is an investment strategy that intends to redefine the capital market for climate solutions. And ACT Capital seeks to meet the wide-ranging capital needs for the transition to clean energy and sustainable industry by providing competitive, flexible, and patient financing to the global market, supporting corporates in their transition to clean energy.
This strategy launches with $4 billion in deployable capital from Apollo affiliates and strategic partners and will enable investment into a diversified global portfolio of yield and hybrid investments.
Last year, Apollo had launched its Sustainable Investing platform, which targets deploying $50 billion in clean energy and climate capital by 2027 and the firm sees the opportunity to deploy more than $100 billion by 2030. Plus ACT Capital will work alongside other strategies across Apollo’s sustainable investing platform toward the $50 billion target. In the first year, Apollo’s sustainable investment platform deployed over $6 billion toward its target.
Given the approximately $4.5 trillion in investments needed annually for achieving the global energy transition by 2050, ACT Capital seeks to accelerate the pace of climate and transition capital deployment. And ACT Capital will utilize the wide range of Apollo’s sourcing capabilities across market cycles to target global opportunities in energy transition, industrial decarbonization, sustainable mobility, sustainable resource use, and sustainable real estate. This strategy will employ the expertise of Apollo’s broader sustainable investing platform, as well as the Firm’s long-standing sustainability ecosystem.
KEY QUOTES:
“We believe ACT Capital is a premier financing solution for companies around the globe who require significant, flexible capital to support their energy transition efforts. We are thrilled to extend our long track record in this area and expand our commitment to driving a more sustainable future, recognizing the urgent need for climate capital deployment.”
— Apollo Co-President Scott Kleinman
“We believe ACT Capital is well-positioned to address the significant gaps that exist in the capital markets for climate and transition financing. Our ability to deploy capital at scale – across sectors and strategies – can provide attractive, diversified exposure to this generation-defining opportunity to address climate change. We sought to build this transformational platform to meet what we view as an underserved need in the climate finance marketplace for both investors and industry participants.”
— Olivia Wassenaar, Apollo’s Head of Sustainable Investing
