Tikehau Capital Launching a PE Decarbonisation Fund with $300m Capital Already Committed

Tikehau Capital, the global alternative asset management group, today announced its intention to launch a North American Private Equity strategy dedicated to transitioning to a low-carbon economy, with $300m of capital already committed.

This new decarbonisation fund will aim to help reach the goals of the 2015 Paris Agreement by providing equity capital to profitable companies in North America focused on the fast-growing energy transition sector. The fund’s mission will be to accelerate the paradigm shift to a low-carbon economy by the growth of corporate leaders in the energy transition space that are developing solutions to lower energy consumption, increase renewable energy supply, expand low-carbon mobility and reduce greenhouse gas emissions.

The launch of this fund is a major step for Tikehau Capital’s impact investing platform. It follows the successful close of Tikehau Capital’s European-focused T2 Energy Transition strategy, which outperformed its original fundraising goals with over around $1.2bn raised. The T2 Energy Transition fund has already invested in six European SMEs focused on clean energy generation, low-carbon mobility and energy efficiency. The new private equity fund dedicated to decarbonising the economy will implement this successful strategy in the North American market as the U.S. has strengthened its commitment to address climate change with the goal of reaching net zero carbon emissions by 2050.

Tikehau Capital and the broad energy company Total have already committed $300m in initial capital. The fund aims at attracting capital from select institutional investors who are looking to actively invest in decarbonising the economy.

Source: Business Wire