TPG Rise Climate, the climate-focused investment arm of TPG’s impact investing platform, has secured $1.25 billion in initial capital for its Global South Initiative (GSI).
The new strategy, launched in partnership with ALTERRA, aims to accelerate private equity investments in high-growth climate opportunities across the Global South by offering enhanced returns.
This initiative seeks to attract institutional capital into climate solutions for emerging markets, which are often underserved by traditional climate investment. The initial capital commitments bring together a diverse group of institutional investors from Asia and North America.
“We expect significant additional commitments in the coming quarters and look forward to activating our GSI strategy as early as Q4 this year,” Jim Coulter, Executive Chairman of TPG and Managing Partner of TPG Rise Climate, said.
The Global South Initiative aims to raise a total of $2.5 billion, with the initial $1.25 billion including contributions from ALTÉRRA’s $5 billion Transformation Fund, which encourages investment in underserved markets by providing catalytic capital.
ALTÉRRA’s CEO, Majid Al Suwaidi, stated, “Our catalytic capital is proving instrumental in attracting investment to these regions. The strong reception to GSI underscores the potential of our strategy.”
TPG has a long track record of investing in the Global South, having committed over $4 billion to more than 20 climate-related companies across nearly 20 countries in the region. GSI will leverage this experience to invest in areas such as Clean Electrons, Clean Molecules & Materials, and Negative Emissions, aligning with TPG Rise Climate’s core verticals.