TPG pencils in Rise Climate II fundraise for 2024, approaches LPs for infra fund

The firm has deployed almost 60% of its debut climate fund, which closed on $7.2bn earlier this year.

TPG has earmarked the beginning of 2024 to launch Rise Climate II, according to co-founder Jim Coulter.

During an earnings call yesterday, Coulter confirmed that the first fund was almost 60 percent deployed, causing attention to turn towards a second fund. He said: “Fundraising documents typically allow fundraising for the next generation to start as you get to 75 percent deployed. So we’re approaching a period where it would clearly make sense to launch Rise Climate 2. And generally, that would probably make sense to think about it as we begin 2024, for ’24 allocations.”

TPG has built a substantial offering in the impact investing space, establishing its Rise Fund franchise in 2016 in partnership with rock star Bono and former eBay president Jeff Skoll. Aimed at opportunities that deliver both a social impact and strong performance, Rise Fund I was closed in 2017 on $2.1 billion. A second fund came three years later, collecting nearly $2.2 billion. The third fund, launched in 2022, had raised $2.15 billion for Rise III as of May this year. The firm added a dedicated climate product to the platform when it launched TPG Rise Climate Fund in 2021 with a $5 billion target. It reached a final close last year on $7.2 billion.

TPG is also looking to add a climate infrastructure product to its impact platform, having begun to pitch the idea to LPs earlier this year. It is “in the process of lining up anchor LPs” according to CEO Jon Winkelried.

The firm did not provide fundraising targets for the fund, though Coulter did acknowledge that climate infrastructure strategies “require large capital pools” to help projects scale. He also did not say when the infrastructure product would be launched, but hinted it would be in line with Rise Climate II.

“You could imagine that we would want to approach the market together with them from a timing point of view,” he said.