Ohio Retirement Adds to Clean Energy Initiative
The School Employees’ Retirement System of Ohio (SERS) committed $75 million, together with a $25 million side-car co-investment, to TPG Capital Rise Climate II, a clean energy initiative within its private equity portfolio.
The investment was financed through cash reserves. TPG Rise Climate allocates significant capital within the climate sector, encompassing energy transition, green mobility, sustainable fuels, sustainable products and materials, and carbon solutions. The fund recently supported cleantech company Monolith Materials.
Additional investors in TPG Rise Climate are the Washington State Investment Board and Hassana Investment Company, the General Organization for Social Insurance of the Kingdom of Saudi Arabia.
The pension system, which suffered a 1.17% loss in real estate during the second quarter, posted investment returns driven by private equity and global private credit, yielding profits of 3.52% and 3.46%, respectively.
SERS has a reduced allocation to public stocks; therefore, SERS’ returns will be favorable but lower than those of other funds with greater equity exposure during periods of significant increases in the U.S. stock market, as reported to the trustees in the September board meeting.