TPG announces $5.4b close of climate fund

TPG Rise Climate, the climate investing strategy of TPG's global impact investing platform TPG Rise, announced on Wednesday the first close of $5.4 billion in subscriptions to its inaugural fund.

TPG Rise Climate's first close received subscriptions from some of the world's largest institutional investors, including Allstate, AXA and The Hartford. Together with other limited partners subscribing to the fund, this group manages more than $3 trillion of assets globally.

TPG Rise Climate's investor base also includes significant participation from many of the world's leading multinational companies, setting the fund apart from traditional private equity vehicles.

To formalize collaboration and share insights among this group, TPG is forming the TPG Rise Climate Coalition. The Rise Climate Coalition will convene regularly to accelerate knowledge exchange, investment opportunities and best practices among the group and the broader TPG Rise Climate ecosystem.

The Rise Climate Coalition is comprised of more than 20 founding companies and members, including 3M, ADM, Allianz and others.

The Rise Climate Coalition includes companies that have done extensive work building sustainability and climate action into their businesses, and a majority have made substantial public commitments to improving their climate footprint.

"TPG Rise Climate includes a unique group of global institutional and corporate investors that are united by capital, innovation, and accountability," TPG Rise Climate’s executive chairman Hank Paulson said.

"This new blend of capital and broad commitment to action is a meaningful acknowledgment of the opportunity to make a difference in the trajectory of climate change. The Rise Climate Coalition brings together leading global businesses in a shared commitment to harness the rigor of TPG's investment process to unlock technologies, scale solutions and deliver broad impact. Together, we can catalyze climate-focused capital to accelerate and scale climate solutions of tomorrow."

"TPG has a history of innovation in impact investing, creating The Rise Fund five years ago, launching Y Analytics and establishing a new category for private equity along with them," said Jon Winkelried, CEO of TPG.

"We are deeply proud of the platform and capabilities we've built in TPG Rise and are thankful to our limited partners for supporting and entrusting us in building this industry-leading initiative. We look forward to partnering with TPG Rise Climate's investors and mission-driven entrepreneurs to continue to demonstrate the immense potential of mission-driven capital."