Investors on July 27 said they have raised a combined $12.4 billion in initial commitments for two separate funds that will finance efforts to limit climate change.
Brookfield Asset Management Inc. said it secured $7 billion for its Brookfield Global Transition Fund, and TPG Capital LP announced a first close of $5.4 billion for its inaugural TPG Rise Climate fund. Brookfield and TPG, which will continue raising money through 2021, set hard caps on their funds of $12.5 billion and $7 billion, respectively.
“It’s a time of both peril and possibility. Climate change is a societal risk but also a generational investment opportunity,” TPG Chairman and Founding Partner Jim Coulter said in a news release. “The partnership of leading investment institutions and major corporations funding TPG Rise Climate signals a growing business community commitment to engaging in this existential issue.”
Brookfield is coordinating on its transition fund with founding partners the Ontario Teachers’ Pension Plan Board and Singapore-headquartered Temasek Holdings (Pte.) Ltd. Brookfield CEO Bruce Flatt said the investment group has a “shared determination to mobilize the resources of the private sector in delivering the innovative and impactful solutions required to effect change.”