Morgan Stanley IM Closes $750M Climate PE Fund

Morgan Stanley Investment Management (MSIM) held the final close of the 1GT climate private equity fund (1GT) at $750 million. 1GT targets growth-oriented investments in companies in North America and Europe aiming to collectively avoid or remove one gigaton of carbon dioxide-equivalent (CO2e) emissions from the Earth’s atmosphere from the date of investment through 2050.

The investor group was led by several institutions in Europe, Japan and North America.

As part of MSIM’s $240 billion alternative investment business, 1GT targets investments in private companies across mobility, power, sustainable food, agriculture and the circular economy.

“We are pleased to have arrived at the final close of 1GT, a highly focused fund that is providing capital at the critical growth stage to companies whose products and services enable meaningful reduction in the global carbon footprint,” said Vikram Raju, MSIM’s Head of Climate Private Equity Investing and 1GT.

Investments from 1GT to date include high-performance portable battery provider Instagrid, sustainable nutrition brand Huel, and sustainable supply chain services company Everstream Analytics.