TPG Rise Climate, the climate investing strategy of TPG’s global impact investing platform, announced it has secured $1.25 billion in initial capital commitments for its new Global South Initiative strategy (GSI). This announcement coincided with the 79th session of the United Nations General Assembly and the start of New York Climate Week.
Launched in partnership with ALTÉRRA (the world’s largest private investment vehicle for climate change action), GSI was built to accelerate and attract institutional capital at scale by offering return enhancements to encourage private equity investments in high-growth climate opportunities across the Global South. With the additional commitments announced, TPG and ALTÉRRA have joined GSI with a broad and diverse set of institutional investors across Asia and North America.
TPG and ALTÉRRA launched GSI at COP28 in Dubai, while targeting $2.5 billion in total capital commitments. And the initial $1.25 billion is inclusive of commitments from ALTÉRRA, which activate as TPG raises additional capital, TPG Rise Climate II, and third-party capital raised through a fund dedicated to the region.
ALTÉRRA made an investment through its $5 billion Transformation Fund, which provides catalytic capital to incentivize investment flows in high-growth climate opportunities in underserved markets.
TPG has invested in PE companies across the Global South for decades. For the climate sector alone, TPG has driven over $4 billion of investment in over 20 climate companies across nearly 20 countries in the Global South. And existing TPG Rise portfolio companies are conserving 6 million acres of wilderness through ecotourism across eight countries in Africa, delivering over 300 megawatts of renewable power in Chile, and leading passenger electric vehicle adoption in India.
For GSI, TPG has been utilizing its experience investing across Africa, South and Southeast Asia, and Latin America to develop a robust pipeline of potential investment opportunities across TPG Rise Climate’s core investing verticals, including Clean Electrons, Clean Molecules & Materials, and Negative Emissions.
KEY QUOTES:
“GSI combines the power of the global TPG platform and the leadership of the TPG Rise Climate franchise to amplify the effects of catalytic capital. As heads of state and members of the global climate community gather in New York, there will be intense focus on driving tangible solutions for financing the new climate economy, particularly across the Global South. We are encouraged by the initial pace of activity and client engagement around a first-of-its-kind strategy for our industry and expect that pace to continue, as we anticipate significant additional capital commitments in the coming two quarters. We look forward to activating our GSI strategy as early as the fourth quarter of this year and are grateful for ALTÉRRA’s continued partnership in spearheading this important initiative.”
-Jim Coulter, TPG Executive Chairman and a Managing Partner of TPG Rise Climate
“These commitments demonstrate ALTÉRRA’s early progress towards channeling scale capital to climate solutions across the Global South, through novel approaches to climate investing. Our catalytic capital is proving instrumental in incentivizing investment to underserved markets, and the strong positive reception to GSI thus far is a testament to the value and potential of our innovative strategy.”
-CEO of ALTÉRRA Majid Al Suwaidi
