Morgan Stanley Investment Management has made significant strides in its climate-oriented private equity strategy, known as 1GT, securing the first close with a hefty $500 million in equity capital commitments. The funding comes from public and private pension funds and an insurance company across the UK, Germany, and the Nordic region.
Vikram Raju, the head of Climate Private Equity Investing and 1GT, oversees the investment strategy of 1GT. The strategy’s primary focus is on investments in growth-stage private companies spanning various sectors, including mobility, power, sustainable food and agriculture, and the circular economy. The ultimate goal is to invest in companies that aim to prevent or eradicate one gigaton of carbon dioxide-equivalent (CO2e) emissions from our planet’s atmosphere from the investment date through 2050. This timeline aligns with the United Nations’ mandate for achieving “Net Zero” emissions.
Recently, the 1GT team made significant strides in realizing this goal by co-leading a $50 million funding round for Everstream Analytics. The funding aims to expedite global supply chain sustainability and reduce emissions for numerous leading global brands.
As of March 31, 2023, Morgan Stanley Investment Management, alongside its investment advisory affiliates, boasts more than 1,300 investment professionals globally and manages or supervises assets worth $1.4 trillion. This climate-focused initiative reinforces their commitment to sustainable investment and underscores their efforts to contribute positively to environmental solutions.