Morgan Stanley Investment Management (MSIM) has closed 1 GT climate private equity fund (1GT) at $750 million of equity capital commitments.
The growth-oriented fund invests in companies seeking to mitigate climate change.
Part of MSIM’s $240 billion alternative investment business, 1GT targets investments in private companies across mobility, power, sustainable food, agriculture and circular economy.
Half of the 1GT team’s financial incentives will be tied to achieving the avoidance or removal of one gigaton of CO2e emissions by 2050, MSIM said in a statement.
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.
1 GT aims to reduce carbon dioxide emissions from the Earth’s atmosphere by investing in North American and European companies from the date of investment through 2050. The investor group was led by a number of institutions in Europe, Japan and North America.
Vikram Raju, Head, Climate Private Equity Investing and 1GT, MSIM, said, “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. 1GT’s investors saw the unique opportunity to invest in a fund with a tangible, transparent, and independently measured climate goal, which directly ties to the team’s incentive compensation.”
“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 N. Miller, Head, Private Credit and Equity, Morgan Stanley. “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.”
