TPG Raises $10.4 Billion for Climate Funds, Including $2.5 Billion for Global South

Global alternative asset manager TPG has completed the final close of its second climate-focused investment fund, TPG Rise Climate II, bringing total capital raised across the fund, its Global South Initiative (GSI) and affiliated investment vehicles to $10.4 billion. Announced on 29 October 2026 alongside the company's third-quarter earnings, the fundraising will support investments in climate solutions across energy, transportation, industrial decarbonization and related infrastructure. The total includes $2.5 billion for TPG's broader Global South Initiative, meeting the fundraising target established when the strategy was launched in partnership with ALTÉRRA at COP28 in 2023.

 

The Global South Initiative is designed to mobilize private capital for climate investments in emerging and developing economies, where projects can face financing barriers and higher investment risks. ALTÉRRA, the UAE-backed climate investment platform, has committed catalytic capital to help reduce these risks and attract institutional investors. The partnership was originally announced with a $500 million catalytic commitment for the Global South strategy, alongside a further $1 billion commitment to Rise Climate II. The final close represents fundraising commitments rather than capital already deployed into climate projects.

 

Read more: Terradot Secures $34 Million from HASI to Expand Carbon Removal Projects

 

TPG Rise Climate focuses on investments across renewable energy, electricity grids, electrification, sustainable fuels, low-carbon materials and carbon solutions. Its strategy spans growth-stage companies and infrastructure businesses supporting the transition towards lower-carbon economic activity. Through Rise Climate II and the Global South Initiative, TPG has already made investments in power, transport, industrials and services. The firm also reported that 31% of commitments to the climate funds came from investors new to TPG.

 

The fundraising follows the $7.3 billion final close of TPG's inaugural Rise Climate fund in 2022 and expands the firm's capacity to finance climate-related businesses and infrastructure. The Global South Initiative's $2.5 billion allocation is particularly relevant to efforts to increase climate investment in markets where commercial financing can be difficult to secure. The environmental impact of the newly raised capital will depend on how it is deployed, project performance, and verified emissions outcomes.