investor allocations

UAE creates $30bn climate bucket, commits to Brookfield, TPG and BlackRock funds

Brookfield and TPG have launched emerging markets-focused climate funds with commitments from ALTÉRRA, the UAE's climate sovereign wealth fund.

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The United Arab Emirates has created a $30 billion budget to invest in climate funds and projects. The move constitutes an enormous injection of capital for global climate projects – particularly in emerging markets – and major commitments to the world’s biggest climate GPs.

The commitment is housed in a dedicated private fund called ALTÉRRA. Of the commitment, $25 billion is earmarked for “climate investments at scale” in a programme named ALTÉRRA Acceleration. The remaining $5 billion is catalytic capital focused on the Global South in a programme named ALTÉRRA Transformation.

ALTÉRRA has committed $6 billion to climate funds managed by TPG, Brookfield Asset Management and BlackRock. These include the largest ever single LP commitment to an impact fund ($2 billion to Brookfield’s Global Transition Fund II) and anchor commitments to new emerging markets-focused funds by Brookfield, TPG and BlackRock. See a full list of initial commitments below.

We will bring you more details, context and analysis on the commitments but, for now, here is a list of ALTÉRRA’s fund investments so far:

Brookfield

  • $2 billion to Brookfield Global Transition Fund II from ALTÉRRA Acceleration. This is the largest ever single LP commitment to a private impact fund.
  • $1 billion anchor commitment to Brookfield’s Catalytic Transition Fund from ALTÉRRA Transformation. Brookfield’s Catalytic Transition Fund will have a multi-billion-dollar target (according to Brookfield’s emailed announcement) and will invest in emerging and developing markets.

TPG

  • $1 billion to TPG Rise Climate II from ALTÉRRA Acceleration
  • $500 million to TPG’s Global South Initiative from ALTÉRRA Transformation. TPG’s Global South Initiative has a $2.5 billion deployment target. $1 billion of TPG Rise Climate II will be co-invested alongside the GSI. The GSI will also seek additional LP commitments.

BlackRock

  • $1 billion to BlackRock’s Climate Transition-Oriented Private Debt Fund from ALTÉRRA Acceleration. BlackRock’s fund was launched in October and will lend to mid-market companies in the US and Europe with “climate transition characteristics and are committed to reducing their carbon emissions”, BlackRock’s emailed announcement states.
  • $650 million to BlackRock Global Infrastructure IV and infrastructure co-investments  from ALTÉRRA Acceleration
  • $250 million to a forthcoming BlackRock Global South infrastructure strategy from ALTÉRRA Transformation
  • $100 million in co-investments alongside BlackRock’s public-private Climate Finance Partnership