Morgan Stanley Investment Management (MSIM) has finalized the 1GT climate private equity fund, securing $750 million in equity capital commitments. The 1GT fund focuses on growth-oriented investments in North American and European companies with the goal of avoiding or removing one gigaton of carbon dioxide-equivalent (CO2e) emissions from the atmosphere by 2050. Leading institutions from Europe, Japan, and North America participated in this investor group.

Vikram Raju, MSIM’s Head of Climate Private Equity Investing and 1GT, commented: “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.”

Half of the financial incentives for the 1GT team will be linked to achieving their CO2e emission reduction target by 2050.

David N. Miller, Head of Morgan Stanley Private Credit and Equity, added: “1GT's close represents the best of Morgan Stanley's thinking around delivering fiduciary returns to our clients while providing transparent, transformational climate impact. 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, 1GT aims at investing in private companies within sectors such as mobility, power, sustainable food and agriculture, and the circular economy. The fund is categorized as an Article 9 fund under the Sustainable Finance Disclosure Regulation.

The 1GT team plans to use Morgan Stanley’s resources to support portfolio companies in achieving earnings growth and enhancing exit potential while focusing on climate change mitigation and improving ESG monitoring. Current investments include Instagrid (a high-performance portable battery provider), Huel (a sustainable nutrition brand), and Everstream Analytics (a sustainable supply chain services company).

Morgan Stanley Investment Management operates with over 1,300 investment professionals globally managing $1.5 trillion in assets as of June 30, 2024. The firm provides diverse investment management solutions worldwide.

Morgan Stanley is a global financial services firm offering various services including investment banking and wealth management across its offices in 42 countries.

For further information about Morgan Stanley Investment Management or Morgan Stanley itself, visit www.morganstanley.com/im or www.morganstanley.com respectively.

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Alyson Barnes

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