climate

Ara Partners has been scaling rapidly over the past few years, raising nearly double its target for Fund II.

Transport and energy systems require the most investment for us to reach net zero globally by 2050, a study by the Climate Policy Initiative and Allen & Overy has found.

Assets that don't have a clear path to decarbonisation are subject to discounts and more expensive debt finance, but the overall picture is complex and unclear, real estate investment managers said on a webinar hosted by the PERE Network.

The €1bn-target vehicle aims to offer a 'comprehensive and differentiated financing solution to projects and players involved in the energy transition', according to an announcement.

While the climate strategy sits within KKR’s infrastructure vertical, it plans to scale new solutions with growth investments as well as real assets.

Fund II has already raised nearly half its target and is expected to wrap up in the fourth quarter of this year.

As more managers integrate transition and physical risk into their market analysis, the implications for capital flows should be substantial.

Despite wider fundraising challenges, sustainable strategies are still pulling in institutional capital, says Shane Swords, managing director and global head of investor relations at NextEnergy Capital.

ESG is ‘part of diligence for almost every fund’, and GP diversity almost always comes up in LP discussions, the placement agent says.

There is a 'compelling business case' for sustainability measures – decarbonisation in particular – say GSAM private equity co-head Michael Bruun and head of real estate client solutions Jeffery Fine.