ALTÉRRA, the UAE’s $30 billion climate-focused investment vehicle, has partnered with Blackrock and TPG to invest $2 billion and $1.5 billion, respectively, in climate transition projects.
TPG, a global alternative asset management firm and ALTÉRRA announced an aggregate $1.5 billion commitment to the next generation of TPG Rise Climate private equity funds, including its new Global South Initiative.
It was further reported that ALTÉRRA has also partnered with BlackRock and has awarded a mandate to invest $2 billion, according to Reuters.
The announcements were made at the World Climate Action Summit at COP28.
The Global South Initiative will be managed by TPG and is purpose-built to accelerate and attract institutional capital at scale by offering return enhancement to encourage private equity investments in high growth climate opportunities in the Global South.
The initiative will receive up to $500 million in innovative catalytic capital from ALTÉRRA Transformation. In addition, TPG Rise Climate will channel approximately $1 billion from its TPG Rise Climate II fund to co-invest alongside the initiative. TPG will also raise additional commitments for the Global South Initiative from its broader network of limited partners.
ALTÉRRA will also commit approximately $1 billion to TPG Rise Climate II from ALTÉRRA Acceleration. TPG is targeting $10 billion in aggregate commitments across its Global South Initiative and TPG Rise Climate II.
On day two of the COP28 climate conference, being held at Expo City Dubai, Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi today announced a $30 billion fund to bridge the climate finance gap and create affordability in the fight against climate change.
Aiming to mobilise $250 billion globally by 2030, ALTÉRRA, is set to become the world’s largest private investment vehicle for climate change action.
(Writing by Bindu Rai, editing by Seban Scaria)