Coinciding with the 79th session of the United Nations General Assembly and New York Climate Week, TPG Rise Climate, the climate investing arm of TPG’s global impact platform, announced today the launch of its Global South Initiative (GSI). Backed by $1.25 billion in initial capital commitments, GSI is a strategic effort to channel private equity into high-growth climate opportunities across the Global South, aimed at mobilizing large-scale institutional capital for climate action. The initiative is spearheaded in partnership with ALTÉRRA, the world’s largest private investment vehicle dedicated to climate finance.
The GSI strategy seeks to accelerate investment in regions most vulnerable to climate change by leveraging the catalytic capital of ALTÉRRA. As part of this unique approach, GSI offers enhanced returns to incentivize private equity investments, driving capital to regions that have traditionally been underserved in the global climate economy. The $1.25 billion secured includes commitments from ALTÉRRA and TPG’s own Rise Climate II fund, with additional funding sourced from institutional investors across Asia and North America.
“Catalytic Capital for the Global South”
TPG’s Executive Chairman and Managing Partner of TPG Rise Climate, Jim Coulter, emphasized the timeliness and significance of GSI’s launch, coinciding with global climate discussions in New York. Coulter noted, “As heads of state and the global climate community convene, there will be intense focus on financing the climate economy, particularly in the Global South. GSI is a first-of-its-kind strategy for our industry, combining TPG’s platform with ALTÉRRA’s leadership to amplify the effects of catalytic capital.” He expressed optimism for future capital commitments, anticipating further growth over the next two quarters, with operations slated to begin in the fourth quarter of this year.
ALTÉRRA’s involvement is seen as crucial in unlocking the potential of GSI. His Excellency Majid Al Suwaidi, CEO of ALTÉRRA, commented, “These commitments demonstrate early progress towards channeling capital to climate solutions across the Global South. Our innovative strategy, combined with catalytic capital, is already incentivizing investment flows into underserved markets, showing the value and potential of this approach.”
Aiming for a $2.5 Billion Goal
GSI’s overall target is to raise $2.5 billion in capital commitments, a goal set when the initiative was introduced at COP28 in Dubai. ALTÉRRA’s contribution to the initial $1.25 billion came from its $5 billion Transformation Fund, which is designed to stimulate investment in high-growth climate opportunities in underserved regions. This fund is a key pillar of ALTÉRRA’s broader mandate to mobilize $250 billion by 2030 to finance the global climate transition.
The initial capital raised will be deployed across TPG Rise Climate’s core investment sectors: Clean Electrons, Clean Molecules & Materials, and Negative Emissions. With a track record of deploying over $4 billion in private equity investments in more than 20 climate-focused companies across the Global South, TPG is poised to leverage its deep experience in the region. Examples of its previous investments include projects that conserve six million acres of wilderness in Africa through ecotourism, the delivery of 300 megawatts of renewable power in Chile, and advancements in electric vehicle adoption in India.
ALTÉRRA and TPG’s Combined Vision
ALTÉRRA was launched at COP28 with a $30 billion commitment from the UAE, marking it as a transformative force in global climate finance. With dual funds—the $25 billion Acceleration Fund and the $5 billion Transformation Fund—ALTÉRRA aims to drive capital toward critical projects that will accelerate the transition to a net-zero and climate-resilient economy. GSI aligns closely with this mission, providing both financial incentives and strategic support to mobilize institutional capital at scale.
Looking Ahead
As TPG and ALTÉRRA continue to build momentum, GSI’s success will serve as a benchmark for future climate finance initiatives, particularly in underserved markets across Africa, Southeast Asia, and Latin America. By combining the strengths of two global climate leaders, the initiative is set to unlock significant opportunities in the Global South, driving both financial returns and tangible climate action.
Climate Insider Notes:
- Initial Funding: GSI has secured $1.25 billion in commitments, with a total target of $2.5 billion.
- Key Players: TPG Rise Climate and ALTÉRRA lead the initiative, joined by institutional investors from Asia and North America.
- Target Regions: GSI will focus on Africa, Southeast Asia, and Latin America, leveraging TPG’s experience in these regions.
- Core Investment Areas: Investments will be directed toward Clean Electrons, Clean Molecules & Materials, and Negative Emissions.
- Upcoming Milestones: GSI is expected to begin operations by Q4 2024, with significant additional capital commitments anticipated over the next two quarters.
Featured Image: Credit: TPG Capital
