TPG closes $10B second climate fund despite US political headwinds
What's the deal? TPG has raised $10 billion for TPG Rise Climate II, its second climate-focused private equity fund, according to BloombergDealroom has a profile for this one. Try Dealroom →. The fund closed to new subscriptions at the end of September and ranks among the largest climate vehicles in private markets.
What's the endgame? The fund targets clean energy, electric transportation, and sustainable materials. It follows the first TPG Rise Climate fund, launched in 2021, and invests globally across buyouts, carve-outs, and growth equity.
Who's backing it? Investors include the New York City Employees' Retirement SystemDealroom has a profile for this one. Try Dealroom → and the State of Michigan Retirement System, according to filings. AlterraDealroom has a profile for this one. Try Dealroom →, the UAE-backed climate vehicle launched in 2023, committed about $1 billion to Rise Climate II, plus $500 million to a separate TPG strategy for emerging markets.
TPG said in an August regulatory filing that its Rise Climate platform had drawn $17.1 billion in total commitments, including $7.4 billion for Rise Climate II at that point.
What's the track record? Recent platform deals include the $4.75 billion sale of clean energy developer Intersect PowerDealroom has a profile for this one. Try Dealroom → to AlphabetDealroom has a profile for this one. Try Dealroom →, the acquisition of Siemens GamesaDealroom has a profile for this one. Try Dealroom →'s wind turbine business in India and Sri Lanka, and an investment in grid services company Pike CorpDealroom has a profile for this one. Try Dealroom →.
Why now? The raise comes despite a tougher political backdrop for climate investing in the US. Investment in energy infrastructure continues to be supported by rising electricity demand, including from the expansion of data centres.
Speaking during New York Climate Week in September, TPG founding partner and executive chair Jim Coulter called the energy transition a "20 to 30-year cycle to rewire our economy and decarbonize it," while acknowledging the opportunity would not develop in a straight line. He said recent political shifts had created a harder environment, but argued underlying activity in the real economy remained resilient.
The signal: Large institutional capital is still flowing into climate despite US policy uncertainty. BloombergNEFDealroom has a profile for this one. Try Dealroom → estimates more than $2 trillion was invested globally in the energy transition last year, with spending on low-carbon technologies continuing to grow.
Read more: privateequitywire.co.uk
