Universities Superannuation Scheme (USS), one of the UK’s largest pension funds, has joined a host of other large institutional investors in subscribing to the climate investing strategy of alternative asset firm TPG’s private markets impact investing platform.
Joining USS in the $5.4bn (€4.6bn) first close were investors including Ontario Teachers’ Pension Plan Board, Public Investment Fund, School Employees Retirement System of Ohio, Silk Road Fund, and State of Michigan Retirement System.
TPG Rise Climate’s investor base also includes significant participation from leading multinational companies, which TPG said distinguishes the fund from traditional private equity vehicles.
The strategy will invest in “the entrepreneurs and businesses building climate solutions around the world,” taking a sector approach ranging from growth equity to value-added infrastructure.
It will focus on five climate sub-sectors: clean energy, enabling solutions, decarbonised transport, greening industrials, and agriculture and natural solutions.
“Leveraging our deep experience in impact investing, we believe TPG Rise Climate can play a positive role in catalysing capital to combat climate change,” said TPG founding partner and executive chair Jim Coulter.
“The partnership of leading investment institutions and major corporations funding TPG Rise Climate signals a growing business community commitment to engaging in this existential issue.”
USS, which had £82.2bn (€96.6bn) assets under management as at the end of the first quarter, recently declared an ambition to be net-zero by 2050 if not before.
TPG Rise Climate has set a hard cap of $7bn in total capital commitments and expects to hold a final close in the fourth quarter of 2021.