BlackRock, TPG, and Brookfield Partner with Alterra for Climate Change Investing

Three prominent investment firms, BlackRock Inc., TPG Inc., and Brookfield Asset Management, have joined forces with Alterra to drive climate change investment initiatives. Alterra, an investment firm backed by an initial $30 billion commitment from the United Arab Emirates (UAE), announced the creation of the largest-ever private investment vehicle for climate change action. The focus of this initiative is on supporting the less affluent southern hemisphere. This announcement took place during the World Climate Action Summit COP28 event in Copenhagen.

Alterra, under the guidance of Chairman Sultan Al Jaber and Chief Executive Majid Al Suwaidi, aims to deploy $250 billion globally by 2030. This ambitious goal marks a "defining moment" and ushers in a "new era" of international climate finance. Alterra currently operates through two main strategies: Alterra Acceleration and Alterra Transformation.

Separately, BlackRock, TPG, and Brookfield unveiled their individual climate investment efforts, all with the support of Alterra. BlackRock's $25 billion Alterra Acceleration investment pool has committed $1 billion to its Climate Transition-Oriented Private Debt strategy. Additionally, both Alterra Acceleration and Alterra Transformation funds have invested in transition-related infrastructure, including a notable $650 million commitment to the BlackRock Global Infrastructure Fund IV.

This collaboration between BlackRock, TPG, Brookfield, and Alterra exemplifies a collective commitment to addressing climate change and driving sustainable investment opportunities on a global scale.

Alterra Acceleration and BlackRock's Climate Financing Partnership are joining forces to drive climate-related infrastructure investments in emerging markets. The collaborative effort involves a co-investment of $100 million by Alterra Acceleration alongside the Climate Financing Partnership. Additionally, Alterra Transformation Fund has committed $250 million to an upcoming BlackRock-managed strategy.

Meanwhile, Alterra is teaming up with Brookfield to establish a catalytic fund worth billions of dollars. This initiative aims to boost global energy transition endeavors. As part of this collaboration, Alterra Transformation has pledged $1 billion for Brookfield to invest in emerging markets, while Alterra Acceleration has further committed $2 billion to the Brookfield Global Transition Fund II.

In another significant partnership, TPG Rise Climate II fund is set to benefit from a $1 billion commitment by Alterra Acceleration. Moreover, TPG is introducing the Global South Initiative, which receives a generous $500 million commitment from Alterra Transformation and a $1 billion co-investment from the TPG Rise Climate II fund.

Overall, TPG has ambitious targets, seeking combined commitments of approximately $10 billion for its Global South Initiative and TPG Rise Climate II efforts.

Embracing Climate Change Mitigation

With these strategic alliances and substantial financial commitments, Alterra and its partners are poised to make a measurable impact on tackling climate change. By fostering investments in clean energy and sustainable infrastructure, Alterra is playing a vital role in driving the global transition towards a greener future.

Also read: UAE oil exec and leader of COP28 climate summit tells U.N., energy industry to 'get after gigatons' of emissions

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