Morgan Stanley Investment Management’s private markets arm has closed a new fund at $110m focused on addressing critical climate issues. The fund, launched by Alternative Investment Partners Private Markets, builds upon the group’s $800m impact investing strategy launched in 2014.
Launched in collaboration with the US congregations of Dominican Sisters, the strategy will fund investments that focus on climate change problems and look to aid marginalised communities that are disproportionately affected by global warming.
“We are delighted with the interest shown by such a broad and global investor group. There is a palpable need from investors for leading and innovative solutions in impact investing, and we are proud to close another successful fundraise,” said Richard Lockwood, head of distribution for Northern Europe, Morgan Stanley Investment Management.
Vikram Raju, head of impact investing at AIP Private Markets, said every dollar invested in the climate program will seek to have a concrete climate impact in addition to generating compelling private markets returns. “AIP Private Markets’ impact investing platform has enabled us to catalyse private sector capital to address some of the most critical challenges faced by the planet and people in need,” he added.
Formed in 2000, AIP Private Markets has worked in partnership with Morgan Stanley IM’s sustainable investment operations since 2014 to drive positive environmental and societal change through private market allocations. These range from early-stage investments in energy efficiency software to more mature opportunities like fruit producers with water-saving hydroponic irrigation systems, the group said in a statement.
The private markets unit has committed approximately $19bn across more than 850 investments globally through March 31, 2020.
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