Morgan Stanley Investment Management (MSIM) has held a first close for the 1GT climate private equity strategy at $500m of equity capital commitments.
Investors include public and private pension funds and an insurance company in the Nordic region, Germany and the UK.
1GT said it is focused on investments in growth-stage companies that will seek to collectively avoid or remove one gigaton of carbon dioxide-equivalent emissions from the Earth’s atmosphere from the date of investment through 2050, the date by which the United Nations has mandated “Net Zero” must be achieved.
MSIM head of climate private equity investing and 1GT Vikram Raju said, “Reaching our halfway goal is an important milestone. Our anchor investors have demonstrated a strong level of climate ambition by backing 1GT with its twin goals of investing in compelling high-growth companies in Europe and North America while aiming to deliver transformational climate impact at the gigaton level.
“Tying the team’s incentive compensation to both of the 1GT goals recognizes this in equal measure. We have begun executing on our pipeline at a very opportune phase in the growth equity market.”
David Miller – head of Morgan Stanley Private Credit and Equity – added, “We are extremely pleased by the strong investor support for 1GT. This strategy provides our clients an innovative solution that seeks to address time-critical climate issues and brings Morgan Stanley’s considerable resources to portfolio companies to help accelerate climate impact and earnings growth to create more exit optionality.”
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