IFC Ploughs $100 Million into TPG's Globally-targeted Climate Solutions Approach for Developing Nations
The TPG's Global South Initiative (GSI), a climate investment strategy focused on emerging markets in the Global South, is actively progressing towards its target of $2.5 billion in total capital commitments. The fund was initially unveiled in December 2023 at the COP28 climate conference in Dubai.
One of the notable commitments to the GSI fund comes from the International Finance Corporation (IFC), which has committed $100 million in equity. This significant investment indicates notable institutional support for the fund.
In addition to the IFC's commitment, the UAE-backed climate investment platform ALTÉRRA has pledged a $500 million anchor catalytic capital commitment to the GSI strategy. This commitment is in addition to the $1.25 billion in initial capital commitments TPG announced in September 2024.
The strategy aims to unlock scalable, high-return climate investment opportunities and accelerate private equity investments in the Global South by offering return enhancement mechanisms to attract institutional capital at scale.
As of August 2025, no specific additional deals beyond the IFC's $100 million equity commitment have been detailed. However, the IFC's commitment is a major milestone confirming active capital raising and deployment efforts for the fund.
The Rise Climate II fund, also focusing on climate investments in emerging markets, is aiming for a hard-cap of $10 billion. Launched in 2023, the Rise Climate II fund has already raised approximately $5.5 billion in its own commitments, indicating strong investor confidence in this strategy.
TPG's statement indicates that the IFC's and Altérra's commitments will help Private Equity capital reach innovative and cost-competitive climate solutions, including clean energy, sustainable materials, and adaptation technologies.
The Rise fund franchise, established by TPG in 2016, targets investment opportunities delivering both a positive social impact and strong financial returns. The GSI fund aligns with this philosophy, aiming to make a positive impact while generating returns.
TPG's GSI strategy has also received commitments from institutional investors across Asia and North America. The strategy's first deal was announced in March of this year, where TPG acquired Siemens Gamesa's onshore wind turbine generator manufacturing business in Sri Lanka and India.
The IFC's deep capital allocation experience in emerging markets is being utilised in the Rise Climate II fund and TPG's GSI strategy, further enhancing their ability to identify and invest in promising climate-focused opportunities.
As the GSI fund continues to raise capital and deploy it into innovative climate solutions, it is poised to make a significant impact on the global fight against climate change.
[1] Source: TPG Press Release, Various News Articles, and Fund Fact Sheets.
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