– Morgan Stanley Investment Management (MSIM) announced the final close of its 1GT climate private equity fund at $750 million in equity capital commitments.
– 1GT focuses on growth-oriented investments in North American and European companies aimed at reducing or removing one gigaton of CO2e emissions by 2050.
– The investor group included institutions from Europe, Japan, and North America.
– Vikram Raju, CFA, MSIM’s Head of Climate Private Equity Investing, emphasized 1GT’s goal of funding companies that can significantly reduce global carbon footprints, with investor incentives tied to achieving this.
– Half of the 1GT team’s financial incentives are tied to avoiding or removing one gigaton of CO2e emissions by 2050.
– David N. Miller, Head of Morgan Stanley Private Credit and Equity, highlighted 1GT’s combination of fiduciary returns and transparent climate impact.
– 1GT is part of MSIM’s $240 billion alternative investment business, targeting investments in mobility, power, sustainable food, agriculture, and the circular economy.
– The fund is classified as an Article 9 fund under the Sustainable Finance Disclosure Regulation (SFDR), promoting sustainability in the investment process.
– The 1GT team plans to leverage Morgan Stanley’s resources to enhance earnings, exit potential, and improve climate mitigation efforts.
– 1GT’s investments include companies like Instagrid (portable batteries), Huel (sustainable nutrition), and Everstream Analytics (supply chain services).
– MSIM manages $1.5 trillion in assets and aims to provide long-term investment solutions to a diverse global client base.
