Morgan Stanley launches environment-focused private equity platform

Morgan Stanley Investment Management (MSIM) launches 1GT growth-oriented private equity platform focused on companies aiming to mitigate climate change. 

The Platform will focus on companies that will cooperatively “avoid or remove” one gigaton of Carbon dioxide-equivalent emissions from the atmosphere of Earth by 2050 to achieve Net Zero targets.

1GT is a part of MIMS’s $200 billion alternative investments business targeting companies mainly based in North America and Europe, the investment firm said.

Vikram Raju, MSIM’s head of climate investing and the 1GT Platform, said: “As COP27 concludes, it is clear now more than ever that we need to radically alter the traditional model of private equity impact investing in three ways.” 

Mentioning the three ways to achieve climate goals, Raju said that firstly there is a need to accomplish climate goals that are “tangible” rather than “anecdotal and ambitious rather than tangential”.

In order to propel significant improvement in climate solutions, he mentioned that a substantial portion of financial incentives should be linked to such environmental objectives. 

Finally, Raju emphasised that the measurement of climate goals should be “transparent to limited partners”.

1Gt will target investments in private companies that provide “measurable positive environmental impact across the mobility, power, sustainable food and agriculture, and circular economy themes”.

© 2022 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST