Morgan Stanley Investment Management (MSIM) has held the final close of the 1GT climate private equity fund (1GT) at $750m of equity capital commitments, with a number of institutions in Europe, Japan and North America leading the investor group.
1GT targets growth-oriented investments in private companies in North America and Europe across mobility, power, sustainable food, agriculture and the circular economy, aiming to collectively avoid or remove one gigaton of carbon dioxide-equivalent (CO2e) emissions from the Earth’s atmosphere from the date of investment through 2050.
Commenting on the close, Vikram Raju, MSIM’s Head of Climate Private Equity Investing and 1GT, said: “1GT’s investors saw the unique opportunity to invest in a fund with a tangible, transparent, and independently measured climate goal, which directly ties to the team’s incentive compensation.”
Half of the 1GT team’s financial incentives will be tied to achieving the avoidance or removal of one gigaton of CO2e emissions by 2050.
“1GT’s close represents the best of Morgan Stanley’s thinking around delivering fiduciary returns to our clients while providing transparent, transformational climate impact,” said David N Miller, Head of Morgan Stanley Private Credit and Equity.
Part of MSIM’s $240bn alternative investment business, 1GT is an Article 9 fund under the Sustainable Finance Disclosure Regulation, which promotes environmental or social characteristics and integrates sustainability into the investment process in a binding manner.
