TPG has raised $10bn for its second climate-focused private equity fund, taking the firm’s climate investment platform to among the largest in the private markets sector, according to a report by Bloomberg.
TPG Rise Climate II, first announced in late 2023, was due to close to new subscriptions at the end of September, according to people familiar with the matter cited by Bloomberg.
The fund targets investments across areas including clean energy, electric transportation and sustainable materials, and follows the first TPG Rise Climate fund launched in 2021.
The firm said in an August regulatory filing that its Rise Climate platform had attracted $17.1bn in total commitments, including $7.4bn for Rise Climate II at that point. The strategy invests globally across buyouts, carve-outs and growth equity transactions.
Recent deals by the platform include the $4.75bn sale of clean energy developer Intersect Power to Alphabet, the acquisition of Siemens Gamesa’s wind turbine business in India and Sri Lanka, and an investment in electrical grid services company Pike Corp.
Investors in Rise Climate II include the New York City Employees’ Retirement System and the State of Michigan Retirement System, according to filings.
Alterra, the UAE-backed climate investment vehicle launched in 2023, has committed around $1bn to Rise Climate II. It has also allocated $500m to a separate TPG strategy focused on climate investments in emerging markets.
The fundraising comes despite a more challenging political backdrop for climate investing in the US, while investment in energy infrastructure continues to be supported by growing electricity demand, including from the expansion of data centres.
BloombergNEF estimates that more than $2tn was invested globally in the energy transition last year, with spending on low-carbon technologies continuing to grow.
Speaking during New York Climate Week in September, TPG founding partner and executive chair Jim Coulter described the energy transition as a “20 to 30-year cycle to rewire our economy and decarbonize it”, while acknowledging that the investment opportunity would not develop in a straight line.
He said recent political shifts had created a more difficult environment for climate investors, but argued that underlying investment activity in the real economy remained resilient.
