Alternative Investment Partners Private Markets (AIP Private Markets), part of Morgan Stanley Investment Management, has closed a new fund which will focus on climate solutions.The USD110 million fund seeks to address critical climate issues including global warming and pollution, depleting resources and eco diversity. This globally diversified private markets offering was launched in a first of its kind collaboration with the US congregations of Dominican Sisters to find investment solutions which focus on climate change and aiding marginalised communities that are disproportionately impacted by global warming.
Since its inception in 2000, AIP Private Markets has focused on providing innovative client solutions within less-efficient areas of the private markets. The team leverages its broad network and expertise in primary fund commitments, secondaries and co-investments to identify opportunities, which because of size, complexity or time-sensitive nature, may be overlooked or avoided by other market participants.
AIP Private Markets launched its impact investing platform in 2014 in partnership with the Morgan Stanley Institute for Sustainable Investing. The globally diversified private markets platform seeks to drive positive social and environmental impact in sectors including mobility, energy, food and agriculture, resource efficiency and the circular economy. The climate investing strategy aims to address problems holistically from global warming to pollution, depleting natural resources and decreasing ecological diversity. These can range from early stage investments in energy efficiency software to more mature opportunities like fruit producers with water-saving hydroponic irrigation systems.
“AIP Private Markets has a proud 20-year history of successfully providing solutions for clients by focusing on the inefficient segments of the market, which are even more pronounced in impact investing. The development of our impact strategy underscores the team’s creativity in seeking to achieve particular objectives across our USD12 billion in client assets, and more specifically, through our robust customised platform,” says John Wolak, Head of AIP Private Markets, Morgan Stanley Investment Management.
“AIP Private Markets’ Impact Investing platform has enabled us to catalyse private sector capital to address some of the most critical challenges faced by the planet and people in need. Every dollar invested in our climate program will seek to have a concrete climate impact measurement ranging from tonnes of CO2 emission offset and litres of water saved, to reduction in air pollution levels, in addition to generating compelling private markets returns,” says Vikram Raju, Head of Impact Investing at AIP Private Markets, Morgan Stanley Investment Management. Raju joined Morgan Stanley in 2014 from the World Bank Group where he was the Global Climate Funds Lead for the IFC.
“This AIP Private Markets climate solutions fund is a clear example of our commitment to seek to deliver commercial, high impact investment solutions to our clients,” says Matthew Slovik, Head of the Global Sustainable Finance Group at Morgan Stanley. “This effort represents a collaboration across Morgan Stanley Institute for Sustainable Investing, Investment Management, and Wealth Management to drive innovation in the climate investing space.”
“We are delighted with the interest shown by such a broad and global investor group, which includes private and public pensions, faith groups, healthcare systems, foundations and endowments, family offices and high net worth individuals. There is a palpable need from investors for leading and innovative solutions in impact investing, and we are proud to close another successful fund-raise,” adds Richard Lockwood, Head of Distribution for Northern Europe, Morgan Stanley Investment Management.