Partners Capital ‘acutely cautious’ in deploying climate fund

The firm has raised $143m, mostly from foundations, endowments and family offices, to invest through funds and co-investments.

Partners Capital, which manages capital for foundations, endowments and family offices, has raised its inaugural private equity environmental impact fund, the firm said on Wednesday.

The $143 million Partners Capital 15 degrees Fund – so called because this would be the average global temperature if the goal of net zero emissions by 2050 is reached – will invest through funds as well as co-investments with venture capital, growth and buyout managers. It will target “proven technological innovations and long-established businesses which are most critical to the global energy transition,” the firm said.

Partners Capital has already started deploying capital from the fund. It is targeting “hard-to-access specialist managers and newer emerging mangers who are well-positioned to understand [the] complex landscape [of the transition to a low-carbon economy],” said co-chief investment officer Suzanne Streeter. “It is a very short list of private equity firms who bring years of successful green energy investment experience to the opportunity set that lies ahead.”

The fund is being led by San Francisco-based real assets and private equity head John Beil. “We are very excited about investing behind this mega-trend, while also being acutely cautious,” he said.