TPG Receives $1.5B from Alterra for Climate Fund

Private equity firm TPG has received a $1.5 billion commitment to its climate change-focused fund from UAE-backed Alterra, a climate focused investment manager created by Abu Dhabi-based alternatives investor Lunate – which launched earlier this year with approximately $50 billion.

The firm will get $1 billion for its TPG Rise Climate II fund, the company’s latest impact investment vehicle. TPG is expected to raise $7.5 billion for the vehicle, a touch above the $7.3 billion it raised for its first Rise Climate Fund in April 2022.

Climate II aims to invest in energy transition, green mobility, sustainable fuels, sustainable products and materials, and carbon solutions.

Alterra announced another $500 million commitment to the newly created Global South Initiative fund, a $2.5 billion-targeting vehicle managed by TPG. The firm also stated it would route approximately $1 billion from its TPG Rise Climate II fund to co-invest with the Global South Initiative.

TPG said it has already invested more than $4 billion in over 20 climate solutions companies across nearly 20 countries in the southern hemisphere to date.

“The combination of the UAE’s substantial commitments and TPG Rise Climate’s extensive experience scaling climate solutions globally has the potential to drive much-needed capital and expertise to the decarbonization challenge,” said Jim Coulter, TPG founding partner and a managing partner at TPG Rise Climate.