TPG, a global alternative asset management firm, in partnership with ALTÉRRA, the world’s largest private investment entity for climate change action, announced a significant US$1.5 billion commitment to TPG Rise Climate private equity funds, introducing the Global South Initiative.
The initiative, managed by TPG, aims to accelerate institutional capital in the Global South by providing return enhancement for investments in high growth climate opportunities. It includes up to US$500 million from ALTÉRRA TRANSFORMATION and an additional US$1 billion from TPG Rise Climate II fund for co-investments. TPG also plans to raise further commitments from its network.
The Global South Initiative will leverage TPG’s extensive experience in the climate sector in the Global South, where it has invested over US$4 billion in climate solutions across nearly 20 countries. This initiative aligns with COP28’s Action Agenda, focusing on energy transition, industrial decarbonization, sustainable living, and climate technologies.
ALTÉRRA, representing the UAE’s long-standing commitment to climate action, focuses on investing in future energy systems. In addition to the Global South Initiative, ALTÉRRA commits about US$1 billion to TPG Rise Climate II from ALTÉRRA ACCELERATION. This fund continues to invest globally in private equity that promotes significant carbon aversion in various climate sectors.
His Excellency Majid Al Suwaidi of COP28 and ALTÉRRA emphasized the partnership’s role in creating a fairer climate finance system and mobilizing capital in the Global South. Jim Coulter of TPG highlighted the collaboration’s potential to scale climate solutions globally.
ALTÉRRA, based in Abu Dhabi Global Market (ADGM), and established by Lunate, focuses on climate investment themes. Lunate, a global investment manager, also operates from Abu Dhabi. TPG, founded in 1992, manages a diverse set of strategies across multiple sectors with a collaborative and innovative approach, boasting $212 billion of assets under management.