Morgan Stanley holds first close of 1GT Climate PE strategy at $500m

Morgan Stanley Investment Management (MSIM) has held a first close for the 1GT climate private equity strategy (1GT) at $500 million of equity capital commitments. Investors include public and private pension funds and an insurance company in the Nordic region, Germany and the UK.

1GT is focused on investments in growth-stage companies that will seek to collectively avoid or remove one gigaton of carbon dioxide-equivalent (CO2e) emissions from the Earth's atmosphere from the date of investment through 2050, the date by which the United Nations has mandated "Net Zero" must be achieved.

Part of MSIM's $200 billion alternative investments business, 1GT targets investments in private companies across the mobility, power, sustainable food and agriculture, and circular economy themes. Under the Sustainable Finance Disclosure Regulation, 1GT is an Article 9 fund, which promotes environmental or social characteristics and integrates sustainability into the investment process in a binding manner. The team recently co-led a $50 million funding round for Everstream Analytics to accelerate global supply chain sustainability and aim to reduce emissions for leading global brands.