Venture Capital: Alterra, A $30B UAE Climate Fund, To Partner With BlackRock, Brookfield, TPG

“ALTÉRRA’s goal is to mobilize $250 billion in capital by 2030 and stimulate a new climate economy in emerging and developing markets that achieve both climate and commercial outcomes.” – Majid Al Suwaidi, Alterra’s proposed CEO

Lunate Capital, based in the UAE, is partnering with global asset managers to create a $30 billion climate fund named Alterra, as announced at the COP28 summit in Dubai. Managed by Lunate and funded by the UAE, Alterra will consist of two components: Alterra Acceleration, allocating $25 billion to institutional capital, and Alterra Transformation, providing $5 billion in risk mitigation for investments in the Global South and emerging markets. Lunate Capital, part of Chimera Investment LLC and owned by the Abu Dhabi royal family, currently manages over $50 billion in assets and is head-quartered in Abu Dhabi.

COP28, the 28th United Nations Climate Change Conference, is ongoing until December 12. UAE officials envision Alterra investing over $250 billion in climate solutions by the decade’s end. The fund plans to allocate capital to various managers, including Brookfield Asset Management, Texas Pacific Group (TPG), and BlackRock.

Brookfield Asset Management is launching a Catalytic Transition Fund, receiving a $1 billion commitment from Alterra, with an additional $2 billion commitment to Brookfield Global Transition Fund II.

BlackRock will receive up to $2 billion from Alterra for two funds: $1 billion for BlackRock’s climate transition-oriented private debt strategy and $1 billion for investment or co-investment in BlackRock’s infrastructure equity business. Larry Fink, BlackRock’s chairman and CEO, sees the launch of Alterra as a catalyst for mobilizing capital globally to support the transition in the Global South and as a blueprint for future collaborations. The ambitious goal of Alterra is to mobilize $250 billion in capital by 2030, playing a pivotal role in advancing the climate economy on a global scale.

Alterra will commit about $1 billion to TPG’s Rise Climate II fund and $500 million to the firm’s new Global South Initiative. The Rise Climate II fund will seek private equity investments in various climate transition strategies, encompassing areas such as energy transition, sustainable fuels, eco-friendly products and materials, and carbon solutions.

Related Story:  CalPERS Commits $100B To Low Carbon Investments

Photo by Mika Baumeister on Unsplash

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