Decarbonization Partners closes $1.4B for dual mandate fund
Description:
On April 25, 2024, Decarbonization Partners, a joint venture between BlackRock and Temasek, successfully closed its inaugural fund at $1.4 billion, surpassing its initial $1 billion target. The climate-focused investment firm, launched in 2022, attracted over 30 institutional investors from 18 countries, including notable backers such as Allstate, BBVA, and TotalEnergies. The fund, officially named Decarbonization Partners Fund I, has already deployed capital into seven companies at the forefront of low-carbon technologies. These investments span sectors including low-carbon hydrogen, biotechnology, and electric battery materials.
BlackRock CEO Larry Fink highlighted the growing demand for energy infrastructure as nations pursue both decarbonization and energy security goals. The fund aims to identify and invest in climate technologies that can reduce costs and facilitate a more affordable energy transition while generating long-term returns for investors. Temasek CEO Dilhan Pillay emphasized the need for collaborative efforts and substantial financial resources to address the climate crisis effectively. The fund operates with a dual mandate, seeking both financial returns and measurable decarbonization outcomes.
With a growing team of over 25 professionals across offices in New York, San Francisco, Singapore, London, Paris, and Houston, Decarbonization Partners is positioning itself as a significant player in the transition to a low-carbon economy.
Leadership:
Dr. Meghan Sharp - Global Head of Decarbonization Partners
Lead investors:
Allstate - an American insurance company, headquartered in Glenview, Illinois since 2022.
BBVA - a Spanish multinational financial services company based in Madrid and Bilbao, Spain.
TotalEnergies - a global integrated energy company that produces and markets energies.
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