Morgan Stanley Investment Management (MSIM) announced the successful final close of its climate solutions-focused private equity strategy, 1GT, raising $750 million. Launched in November 2022, the fund aims to help eliminate 1 gigaton of CO2 emissions by 2050 through targeted investments in companies focused on sustainability. 1GT targets growth-oriented companies in North America and Europe, across key sectors such as mobility, power, sustainable food, agriculture, and the circular economy. The fund’s investments are specifically designed to enable meaningful reductions in the global carbon footprint, with its mission closely aligned with the global climate goals. Vikram Raju, MSIM’s Head of Climate Private Equity Investing and 1GT, emphasized the significance of the fund’s mission, stating: “We are pleased to have arrived at the final close of 1GT, a highly focused fund providing capital at the critical growth stage to companies whose products and services reduce the global carbon footprint.
Investors saw the unique opportunity in a fund with a tangible, transparent, and independently measured climate goal, which directly ties to the team’s incentive compensation.” In line with the European Union’s Sustainable Finance Disclosure Regulation (SFDR), 1GT is classified under Article 9, signifying its alignment with the highest sustainability standards. Notably, half of the 1GT team’s compensation is tied to achieving its carbon reduction goals, underscoring the commitment to measurable impact. David N. Miller, Head of Morgan Stanley Private Credit and Equity, added: “1GT’s close represents the best of Morgan Stanley’s thinking around delivering fiduciary returns to our clients while providing transparent, transformational climate impact. We are also able to offer our growth-stage investees the insight, expertise, and access that come with being part of a leading global financial services firm.” This final close underscores the growing importance of private equity in driving climate-focused initiatives, reflecting investor demand for impactful investments that deliver both financial returns and significant environmental benefits. Through 1GT, Morgan Stanley is positioning itself as a leader in climate finance, using its financial strength and expertise to support companies committed to tackling the climate crisis.