BlackRock, TPG, Brookfield team up with $30 billion United Arab Emirates-backed climate investing push

By Steve Gelsi

United Arab Emirates-backed Alterra teams up with at least three big North American private-equity shops in its climate push

BlackRock Inc., TPG Inc. and Brookfield Asset Management on Friday said they're teaming up on climate change investing efforts with Alterra, an investing firm backed with an initial $30 billion commitment from the United Arab Emirates.

The UAE announced what it describes as the largest-ever private investment vehicle for climate change action with a focus on the globe's less affluent southern hemisphere, as political leaders met at the World Climate Action Summit COP28 event in Copenhagen on Friday.

Alterra is seeking to help deploy $250 billion globally by 2030 under its Chairman Sultan Al Jaber and Chief Executive Majid Al Suwaidi, as a "defining moment" as part of a "new era" of international climate finance. Alterra is currently broken into two main strategies, Alterra Acceleration and Alterra Transformation.

BlackRock (BLK), TPG (TPG) and Brookfield (BAM) separately unveiled climate investment efforts with backing from Alterra.

BlackRock said the $25 billion Alterra Acceleration investment pool committed $1 billion to its Climate Transition-Oriented Private Debt strategy

The Alterra Acceleration and Alterra Transformation funds also invested in transition-related infrastructure, including a $650 million commitment to the BlackRock Global Infrastructure Fund IV.

Alterra Acceleration will also co-invest $100 million alongside BlackRock's Climate Financing Partnership, a public-private finance vehicle aimed at climate-related infrastructure in emerging markets.

The Alterra Transformation fund also committed $250 million to a yet-to-be-announced BlackRock-managed strategy.

For Brookfield, Alterra plans to join forces to create a multi-billion dollar catalytic fund to promote energy transition efforts around the globe.

Alterra Transformation committed $1 billion for Brookfield to invest in emerging markets, as well as an additional $2 billion commitment from Alterra Acceleration for Brookfield Global Transition Fund II.

TPG said Alterra Acceleration committed about $1 billion to the TPG Rise Climate II fund.

TPG is also launching its Global South Initiative with a $500 million commitment from Alterra Transformation and a $1 billion co-investment from the TPG Rise Climate II fund.

All told, TPG said it's targeting about $10 billion in combined commitments for its Global South Initiative and TPG Rise Climate II efforts.

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

Also read: Wind power is losing in New Jersey, but winning in Virginia. Here's where the rest of the U.S. stands.

-Steve Gelsi

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12-01-23 1421ET

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