The fund launched in 2021 with a $2bn target and will invest at least a quarter of its capital in diverse-owned businesses.
It will take 'two to three years' for the firm to roll out its methodology for ESG-enabled EBITDA across the portfolio, says partner Monika Nachyla.
Investors are more focused on carbon sequestration, said Regenerate Asset Management chief executive Ben Stafford at a film screening in London.
Decarbonization Partners, led by Meghan Sharp, has already deployed 25% of its late-stage venture and growth equity fund.
ELTIFs and LTAFs have been adopted by several GPs – most recently Pictet – looking to raise capital for sustainable investment strategies.
Climate change and social injustice are created by 'the same set of behaviours: it's extracting unsustainably from people and the planet', says Rachel Robasciotti.
The fund's focus on 'driving emissions reductions and energy savings today' filled a gap in the fundraising market, says managing partner Stuart Barkoff.
Uncertainty about the use of proceeds poses an issue for NAV lenders looking to manage ESG risks.
Lenders are focusing on the sponsor to understand ESG risks, rather than the underlying investments in their portfolio, according to experts.
The global head of the insurer’s alternative business says performance is the top priority as it works to decarbonise its €85bn real estate portfolio.