Investcorp, a global investment manager specialising in alternative investments, today announced the launch of its new Climate Solutions investment platform, anchored by Mumtalakat, Bahrain’s sovereign wealth fund, and other Bahrain-based institutions.
The newly launched platform will leverage the firm’s global network and deep sector expertise to identify opportunities for private capital investment in companies that provide products, services and technology that support decarbonisation and address the impacts of climate change.
The overarching objective of the Climate Solutions Investment Platform is to accelerate the global transition to a zero-carbon economy with a focus on the deployment and rapid scaling of commercially proven climate solutions that have the potential to transform industries across four key impact pathways.
Investcorp believes that an additional key aspect of the underlying investment strategy stems from the recognition that mobilising the commercial scale-up of such solutions will enable broad-based availability of much-needed decarbonization products and services at attractive price points for the Global South.
By doing so, the platform has the potential to help the region better manage and mitigate the challenges of climate change which are impacting the area disproportionately, while accelerating overall global emissions reductions.
The climate solutions investment platform will make equity investments in businesses at the growth “inflexion point” where they have matured past many of the risks that face earlier-stage ventures. Investcorp’s long history in middle-market investments and the firm’s well-developed global network ideally position the platform to support such founders and companies in their expansion plans.
“Addressing climate change is a global challenge, and the private sector has a clear role to play in financing the decarbonisation journey. Beyond the long-term positive impact on the environment, we believe there are real and concrete opportunities for investors to target strong returns through climate investment,” said Mohammed Alardhi, Executive Chairman of Investcorp.
“Consistent with our history as a pioneer and innovator in the field of alternative investing, we have launched this platform because we recognized the potential for growth in this space and believe that we can continue to do well by doing good”.
The decarbonisation of all sectors of the global economy will require a significant amount of capital estimated to be $9.2 trillion of annual investment through 2050. Leading businesses that emerge will need funding and operational support to rapidly scale to meet emissions reduction targets and respond to accelerating climate effects.
The launch of the platform further builds upon Investcorp’s commitment to sustainability, by deploying value-added investment towards scaling up high-performing sustainable businesses, driving greater social impact, and allocating resources and capital to accelerate decarbonization both within the firm and across Investcorp’s global investment portfolios.
