Infrastructure Appetite Remains Hearty 

Generate Capital, a sustainable infrastructure developer, raised $1.5 billion from institutional investors and pension funds, including a new major investor, the California State Teachers’ Retirement System. 

Founded in 2014, San Francisco-based Generate became a public benefit corporation in 2021 and has raised more than $10 billion since its start in 2014. It has contributed to the advancement of more than 50 initiatives and technological enterprises. 

Australian investors have also expressed interest in Generate Capital’s products, with HESTA, the Queensland Investment Corporation (QIC), and AustralianSuper participating in the most recent round, in addition to supporting a prior $2 billion fundraise. 

Generate invested more than $2 billion in the energy transition last year, and as of September, it had contributed to the production of over 320GWh of sustainable power and the processing of more than 715Kt of organic waste.   

There are numerous signs that infrastructure is becoming an increasingly important asset class. KKR, J.P. Morgan, and other major firms highlighted infrastructure investment as a key trend in their 2024 outlook highlights. 

Major developments in the industry include BlackRock’s $3 billion acquisition of Global Infrastructure Partners and its $500 million investment in Recurrent Energy in January, as well as General Atlantic’s acquisition of Actis, a sustainable infrastructure investment firm. 

Scott Jacobs, CEO and co-founder of Generate Capital, believes that this is only the beginning of a long-term investment cycle. “We’re at an inflection point in the transition to a clean energy economy,” he told reporters. “While the window for action is shrinking by the day, we have the blueprints to create the vital infrastructure required for a livable future. We should invest trillions, not billions.”