Investcorp has launched a decarbonisation fund targeting $750 million, anchored by Bahrain sovereign wealth fund Mumtalakat – another example of increasing capital flows to climate themes from the Middle East.
The fund, Climate Solutions Partners, will invest in mid-market growth, “commercially proven” opportunities in four sectors: carbon management, buildings, transportation and food and agriculture, Mumtalakat’s announcement said.
Investcorp is looking to invest globally, although the Mumtalakat announcement hints that it may have a specific interest in the Global South: the fund’s objectives include “enabling broad-based availability of much-needed decarbonisation processes, products and services at attractive price points to the Global South”.
Mumtalakat’s investment is part of a wave of climate commitments from the Middle East in recent weeks, coinciding with COP28 in Dubai.
The UAE has created a $30 billion fund for climate investments, known as ALTERRA.
In previous years, the Abu Dhabi Investment Authority committed to Energy Impact Partners’ €290 million Europe fund, which closed in 2022, while Saudi Arabia’s Public Investment Fund is an LP in TPG Rise Climate I.
“Climate change is one of the most compelling investment opportunities for the coming years, and it is critical that the GCC [Gulf Cooperation Council] and wider MENA region is positioned to lead in the energy transition and the new solutions which will be required,” Mumtalakat chief executive Shaikh Abdulla bin Khalifa Al Khalifa said in the announcement.