Saudi Arabia’s Hassana Investment Company will make a “substantial anchor commitment” to TPG Rise Climate’s new Transition Infrastructure fund under a recently announced $1.5-billion strategic partnership. A part of the commitment will go to the TPG Rise Climate II fund, Bloomberg reported.
TPG Rise Climate is part of alternative asset manager TPG’s $19-billion impact platform TPG Rise. It invests in areas including energy transition, green mobility, sustainable fuels, sustainable products and materials, and carbon solutions.
In addition to the private equity funds, the new Transition Infrastructure strategy offers a value-added, risk-return profile between core infrastructure and private equity, TPG said in a statement.
“Large and sophisticated investors like Hassana are essential to meeting the growing capital demands of the new climate economy. With this commitment, we are driving the TPG Rise Climate platform’s evolution to continue delivering differentiated capital and capabilities across assets globally and in the Kingdom,” said Jim Coulter, TPG Founding Partner and Managing Partner of TPG Rise Climate.
This partnership signifies the importance of international and local partnerships in addressing global climate challenges, the firm added.
Hassana is the investment manager of the General Organisation for Social Insurance, with over 1.2 trillion saudi riyal ($320 billion) of assets under management.
Its commitment to TPG Rise Climate funds comes almost six months after Alterra, the world’s largest private investment vehicle for climate change action, committed $1.5 billion to TPG Rise Climate II fund and the platform’s Global South Initiative.
The United Arab Emirates launched Alterra at COP28 and announced $30 billion in the fund.
TPG Rise Climate closed its first private equity fund at $7.3 billion in 2022. The vehicle had invested Rs 1,613.7 crore in Tata Technologies Ltd, a subsidiary of Indian automaker Tata Motors Limited.
