TPG Rise Climate, the climate investing arm of TPG’s global impact platform TPG Rise, has successfully raised $1.25 billion in initial capital commitments for its newly launched Global South Initiative (GSI). The GSI strategy is designed to accelerate climate solutions across the Global South, with a significant focus on attracting institutional capital to scale climate investments in the region. A highlight of the initiative is a $500 million commitment from ALTÉRRA, a UAE-backed climate investment platform. The Global South Initiative was introduced at the COP28 climate conference held in Dubai in December 2023. It aims to raise a total of $2.5 billion to support high-growth climate opportunities in the Global South, including investments in sustainable infrastructure, renewable energy, and other transformative climate solutions.
TPG Rise Climate plans to activate the GSI strategy in the fourth quarter of 2024. Jim Coulter, CEO of TPG and Managing Partner of TPG Rise Climate, expressed his optimism about the speed of spending and customer engagement. He expects this march to continue, with more spending in the coming quarter. Coulter emphasized the uniqueness of this strategy, which would generate more revenue to encourage private equity investment in these areas. ALTÉRRA’s CEO Majid Al Suwaidi praised the progress of GSI’s strategy and emphasized the key role of catalytic capital to encourage investment in covered markets. He noted that the strong reception to the GSI underscores the value of the approach taken by ALTÉRRA and TPG Rise Climate. Through these innovative investment strategies, ALTÉRRA is working to channel large-scale capital into climate solutions that address the specific challenges faced by the Global South. In addition to the contributions from ALTÉRRA and TPG’s Rise Climate II fund, the GSI strategy has garnered commitments from institutional investors across Asia and North America. These funds will be used to deploy climate technologies and projects that aim to significantly reduce emissions and enhance sustainability in emerging markets, where the need for climate action is often the most pressing but access to capital is limited. This marks an important step in bridging the gap between financial resources and climate solutions in developing economies, further amplifying the impact of global climate efforts. The collaboration between ALTÉRRA and TPG Rise Climate reflects the growing interest and awareness of renewable energy in transitioning the Global South to the modern world.