Morgan Stanley Investment Management announced on Monday that it has raised $750 million through 1GT, its climate-focused private equity fund.
According to a statement, 1GT targets investments in companies in North America and Europe, aiming to eliminate 1 gigaton of carbon dioxide emissions by 2050.
“We are pleased to have arrived at the final close of 1GT, a highly focused fund that is providing capital at the critical growth stage to companies whose products and services enable meaningful reduction in the global carbon footprint,” said Vikram Raju, MSIM’s head of climate private equity investing and 1GT, in the statement.
The statement further said half of the 1GT team’s financial incentives will depend on achieving the 2050 target.
“1GT’s close represents the best of Morgan Stanley’s thinking around delivering fiduciary returns to our clients while providing transparent, transformational climate impact,” said David Miller, head of Morgan Stanley Private Credit and Equity.
“We are also able to deliver to our growth stage investees the insight, expertise and access that come from being a leading global financial services firm.”
As part of MSIM’s $240 billion alternative investment business, the fund targets investments in private companies across mobility, power, sustainable food, agriculture and the circular economy.
1GT is an Article 9 fund under the Sustainable Finance Disclosure Regulation, which promotes environmental or social characteristics and integrates sustainability into the investment process in a binding manner.
The 1GT team will leverage Morgan Stanley’s considerable resources to partner with portfolio companies to pursue earnings growth, multiple expansions, and enhanced exit potential while helping to increase climate change mitigation and improve ESG monitoring and reporting.
Examples of 1GT’s investments include high-performance portable battery provider Instagrid, sustainable nutrition brand Huel, and sustainable supply chain services company Everstream Analytics.
