TPG raises $10bn for second climate private equity fund
TPG has raised $10bn for its second climate-focused private equity fund, taking the firm’s climate investment platform to among the largest in the private markets sector, according to a report by Bloomberg.
TPG has successfully raised $10 billion to launch its second climate-focused private equity fund, TPG Rise Climate II. This marks a significant milestone for the firm, positioning its climate investment platform among the largest in the private markets sector, as reported by Bloomberg. The fund, announced in late 2023, was set to accept new subscriptions by the end of September.
TPG Rise Climate II aims to invest in clean energy, electric transportation, and sustainable materials, following the 2021 launch of the original TPG Rise Climate fund. BloombergNEF estimates that over $2 trillion was invested globally in the energy transition in the previous year, with low-carbon technology spending continuing to grow.
Despite a more challenging political climate in the US for climate investing, TPG's strategy seeks to capitalize on ongoing investment in energy infrastructure, driven by increasing electricity demand from data center expansion. Recent deals by the platform include the $4.75 billion sale of clean energy developer Intersect Power to Alphabet, the acquisition of Siemens Gamesa's wind turbine business in India and Sri Lanka, and investment in electrical grid services company Pike Corp. Notable investors in TPG Rise Climate II include the New York City Employees' Retirement System and the State of Michigan Retirement System.
UAE-backed climate investment vehicle Alterra has also committed around $1 billion to the fund, with an additional $500 million allocated to a separate TPG strategy focused on climate investments in emerging markets.
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