TPG closes $10.4B climate raise across two funds

TPG closed its second climate fund and its Global South strategy with $10.4 billion in commitments across the two funds and related vehicles, the firm said in an Oct. 30 announcement reported by ESG Today. The Global South Initiative reached its $2.5 billion target, and TPG said 31% of the commitments to the climate funds came from investors new to the firm.

TPG launched Rise Climate in 2021 and closed the inaugural fund in 2022 at $7.3 billion. Rise Climate II followed in 2023, and the Global South Initiative was announced at the COP28 climate conference in December 2023 to direct private equity into climate projects in emerging markets. The strategy invests from growth equity to value-added infrastructure across three theme areas: clean electrons, covering renewables, grid and electrification and commercial and industrial decarbonization; clean molecules and materials, including sustainable fuels and low-carbon building materials; and negative emissions, including environmental commodities, carbon markets and carbon removal.

For family offices and RIAs assessing climate exposure through private markets, the overlap makes the specific vehicle, not the TPG franchise, the unit of diligence. The combined figure is not directly comparable with the $7.3 billion inaugural fund; the $10.4 billion spans both strategies and related vehicles, and the Global South Initiative's initial commitments included capital from Rise Climate II itself, so part of the $2.5 billion overlaps with the larger figure. ALTÉRRA, the UAE-backed climate investment platform that Private Wealth Daily previously reported among the eleven climate platforms in BBVA's roster, anchored the strategy with $500 million. The Global South mandate is emerging markets. Rise Climate's themes are defined by technology.