In brief: BlackRock-Temasek’s debut climate fund draws Cathay Life commitment

Decarbonization Partners’ first fund, launched in March 2021, has a $1bn target.

The first fund from BlackRock and Temasek’s joint venture, Decarbonization Partners, has received a $20 million investment from Taiwanese insurance company Cathay Life. The fund is a late-stage venture and early-stage growth equity strategy with a $1 billion target.

Decarbonization Partners, launched in April 2021, was established to manage a series of private funds “with a focus on early-stage growth companies targeting proven, next-generation renewable and mobility technology”, the launch announcement stated. The two organisations jointly pledged to commit $600 million “to invest in multiple funds launched by the partnership” in the announcement. The first fund’s current size has not been disclosed; another LP is fund of funds manager Reach Alternative Investments.

The partnership has invested in carbon management platform Carbon Direct and biomaterials company MycoWorks. Areas of interest for the partnership include “emerging fuel sources”, grid solutions, battery storage, electric and autonomous vehicle technologies, decarbonisation in building and manufacturing sectors, resource efficiencies, and material and process innovation, the launch announcement stated.