The International Finance Corporation announced a $100 million equity commitment to global alternative asset firm TPG’s Global South Initiative (GSI) fund, which aims to unlock climate-focused investment opportunities across emerging markets.
The new GSI strategy was initially unveiled in December 2023 at the COP28 climate conference in Dubai, targeting $2.5 billion in total capital commitments. The strategy is aimed at accelerating and attracting institutional capital at scale by offering return enhancement to encourage private equity investments in high growth climate opportunities across the Global South.
In September 2024, TPG announced that it had raised $1.25 billion in initial capital commitments for its new Global South Initiative (GSI) strategy, including a $500 million commitment from UAE-backed climate investment platform ALTÉRRA, as well as from its TPG Rise Climate II fund. TPG has said that the GSI strategy has also received commitments from institutional investors across Asia and North America.
TPG announced its first deal from the strategy in March of this year, where it acquired Siemens Gamesa’s onshore wind turbine generator manufacturing business in Sri Lanka and India.
Rise Climate II, launched in 2023, has previously raised around $5.5 billion in its own commitments – more than halfway to its hard-cap of $10 billion.
TPG established its Rise fund franchise back in 2016 to target investment opportunities that deliver both a positive social impact and strong financial returns.
TPG said:
“IFC’s deep capital allocation experience in emerging markets, alongside Altérra’s anchor catalytic capital commitment to the GSI strategy, will help to channel private equity capital to innovative and cost-competitive climate solutions, including those that are meeting demand for abundant, reliable, and clean energy, more sustainable materials and molecules, and adaptation technologies.”
