Alternative Investment Partners Private Markets (AIP Private Markets), part of Morgan Stanley Investment Management, today announced it has built upon its $800 million impact investing platform by closing on a fund which will focus on climate solutions. The $110 million fund seeks to address critical climate issues including global warming and pollution, depleting resources and eco diversity. This globally diversified private markets offering was launched in a first of its kind collaboration with the US congregations of Dominican Sisters to find investment solutions which focus on climate change and aiding marginalized communities that are disproportionately impacted by global warming.
AIP Private Markets launched its impact investing platform in 2014 in partnership with the Morgan Stanley Institute for Sustainable Investing. The globally diversified private markets platform seeks to drive positive social and environmental impact in sectors including mobility, energy, food and agriculture, resource efficiency and the circular economy. The climate investing strategy aims to address problems holistically from global warming to pollution, depleting natural resources and decreasing ecological diversity. These can range from early stage investments in energy efficiency software to more mature opportunities like fruit producers with water-saving hydroponic irrigation systems.
Morgan Stanley says that AIP Private Markets’ Impact Investing platform has enabled the company to catalyze private sector capital to address some of the most critical challenges faced by the planet and people in need.
The new fund is a collaboration across Morgan Stanley Institute for Sustainable Investing, Investment Management, and Wealth Management to drive innovation in the climate investing space.
Just last year, E+E Leader reported that three-quarters of US asset managers said their firms now offer sustainable investing strategies, up from 65% in 2016. Eighty-two percent said it is possible to maximize financial returns while investing sustainably, and 89% said sustainable investing is here to stay. Most asset managers view sustainable investing as a business-building approach and believe that financial returns and sustainable outcomes can go hand in hand. But to drive future success in the space, asset managers say, companies need more expertise, more precise data, and better reporting.