Fifth Wall, a venture capital firm dedicated to real estate technology investments – known as ‘proptech’ – has gathered $500 million for its inaugural climate fund, the firm said in a statement.
As with other high-profile funds in the nascent proptech segment, the investor base behind the vehicle is dominated by strategics.
Says the firm: “Fifth Wall’s Climate Fund received LP commitments from American Homes 4 Rent, BBVA, British Land, Camden Property Trust, CBRE, Cosan, The Durst Organization, Equity Residential, Hilton, Host Hotels & Resorts, Hudson Pacific Properties, Invitation Homes, Ivanhoé Cambridge, Kimco Realty Corporation, Lineage Ventures, MGM Resorts, NZ Super Fund, Osgoode Properties and UDR, among others.”
“The strategic LPs in our Climate Fund have […] taken a true leadership role among the industry by making real financial commitments to address real estate’s contributions to climate change,” said Brendan Wallace, co-founder and managing partner of Fifth Wall.
Impact-orientated funds – particularly those with a focus on technology to decarbonise industries – appeal to strategic investors, who want early sight of emerging tech. Energy Impact Partners and OGCI Investments are two examples of managers that have raised significant capital from corporates.
“We’re proud to partner with the industry’s leading owners and operators, who understand the correlation between an unyielding commitment to climate innovation and an ample balance sheet,” said Greg Smithies, partner and co-lead of the climate investment team.
Founded in 2016, Los Angeles-based Fifth Wall is a B Corp, and has approximately $3.2 billion in commitments and assets under management.