Decarbonization Partners, a collaboration between BlackRock and Temasek, has successfully closed its inaugural fund, The Decarbonization Partners Fund I, at US$1.40 billion, surpassing its initial US$1 billion goal. This fund is dedicated to investing in next-generation private companies driving decarbonization and the transition to a net-zero economy, marking a significant milestone for climate technology investment.
The Fund attracted over 30 institutional investors from 18 countries across North America, Europe, and Asia Pacific, showcasing the global interest in climate-focused investments. This diverse investor base includes public and private pension funds, sovereign wealth funds, insurance companies, corporations, and family offices, highlighting the broad appeal of Decarbonization Partners’ investment strategy. Prominent investors encompass names like Allstate, BBVA, KIRKBI, Mizuho Bank Ltd., MUFG Bank Ltd., and TotalEnergies, alongside substantial commitments from Singaporean institutional investors. The varied and extensive investor participation underscores the worldwide scope of the climate investment opportunity, perfectly aligning with the global perspective of Decarbonization Partners.
Dr. Meghan Sharp, Global Head of Decarbonization Partners, stated, “This successful fundraise reflects the unique strength of our team and platform, meticulously built over the past two years. Clients have demonstrated strong confidence in our ability to execute our strategy, which focuses on accelerating decarbonization and the transition to a net-zero economy through strategic investments.” She further emphasized the intentional design of Decarbonization Partners as a purpose-driven entity, uniquely positioned to convene and collaborate with crucial stakeholders within the climate ecosystem, including pioneering companies, major corporations, co-investors, clients, and providers of later-stage capital. Dr. Sharp expressed her pride in leading this global initiative alongside their international partners.
Launched in 2022, Decarbonization Partners has rapidly emerged as a leading global climate technology investment platform. Its core mission is to cultivate an ecosystem of sophisticated investors committed to accelerating the deployment of capital into the burgeoning climate tech asset class. The international team of investors contributes strategic, financial, operational, and technical expertise, coupled with substantial capital resources, to support the growth and success of Decarbonization Partners’ portfolio companies.
Larry Fink, Chairman and CEO of BlackRock, commented on the fund’s significance, noting, “There is significant and growing demand for new energy infrastructure as countries globally aim to transition to lower-carbon energy sources while simultaneously ensuring energy security. Decarbonization Partners effectively unites the strengths of Temasek and BlackRock to identify exceptional, long-term investment opportunities within climate technology. We believe these investments will be instrumental in reducing the ‘green premium,’ facilitating a more economically viable energy transition, and delivering robust, long-term financial returns for our investors.”
Dilhan Pillay, Chief Executive Officer of Temasek, added, “Addressing the urgent climate crisis demands large-scale innovation, supported by substantial and sustained financial investment. This is a challenge no single organization can tackle alone. We are encouraged by the strong support from numerous partners and investors in Decarbonization Partners’ inaugural fund. Their involvement will be crucial in accelerating the development and deployment of innovative solutions for real-world decarbonization at scale. Such collaborations and collective endeavors are vital as we strive to make significant progress towards our shared global net-zero ambitions.”
The Fund’s investment strategy is designed with a dual objective: to generate attractive long-term financial returns and to invest in companies that are demonstrably advancing intentional, material, and measurable decarbonization outcomes. Decarbonization Partners, categorized as an SFDR Article 9 fund, focuses on companies with de-risked technologies ready for scaling, poised to benefit from the extensive and complementary platforms of BlackRock and Temasek, as well as their deep industry access.
To date, the Fund has already allocated capital to seven companies specializing in a range of innovative decarbonization technologies. These investments span sustainable materials for enhanced lithium-ion battery performance, clean hydrogen production, science-driven carbon management services, low-emission battery recycling technologies, electric vehicle fleet management solutions, and thermal energy storage for industrial applications. Decarbonization Partners has cultivated a strong pipeline of exclusive deal flow and plans to continue its investment momentum in the coming months. Further details about Decarbonization Partners’ portfolio companies can be found on their website.
The Decarbonization Partners team has expanded to over 25 professionals, including seasoned experts in venture capital, growth equity investment, and portfolio management. With offices in New York, San Francisco, Singapore, London, Paris, and Houston, the team is strategically positioned globally. It is structured to offer portfolio companies valuable, trusted partnerships, providing significant technical and operational experience to support their growth trajectories.
About Decarbonization Partners
Decarbonization Partners is a joint venture between Temasek and BlackRock, concentrating on late-stage venture capital and early growth private equity investments. Its focus is on next-generation companies developing and deploying solutions and technologies that accelerate global progress towards achieving a net-zero global economy by 2050. Decarbonization Partners leverages the synergistic platforms and expertise of Temasek and BlackRock in sourcing and underwriting private investments, portfolio and risk management, and sustainable technology and analytics. The partnership targets investments across various sectors critical to decarbonization, including Carbon Capture, Storage, and Utilization, Bio and Low Carbon Products, Next Generation Energy, Advanced Mobility, Carbon Management Services, and Digital Transformation. This collaboration reflects BlackRock and Temasek’s shared commitment to fostering more sustainable and resilient investment portfolios while simultaneously generating consistent, long-term financial returns for their clients and stakeholders.
Risk Warnings
Investors should consult the prospectus or offering documentation for a comprehensive understanding of the fund’s risks.
Investment involves risk. The value of investments and the income derived from them can fluctuate and are not guaranteed. Investors may not recover their initial investment.
Past performance is not indicative of future results and should not be the sole factor in making investment decisions.
Exchange rate fluctuations may adversely affect the value of investments. Investments in higher volatility funds may experience sudden and substantial value declines. Tax regulations are subject to change and depend on individual circumstances.
Concentration Risk: Limited investments may disproportionately impact fund returns if a single investment underperforms. Diversification is not guaranteed, and concentrated investments in specific sectors or regions increase susceptibility to adverse conditions.
Investment Availability: Competition for investments is intense. There is no guarantee that the Fund will find suitable investments or fully deploy its capital.
Withdrawal Restrictions: This is not a short-term investment. Withdrawals are restricted, and investors are committed for the fund’s duration.
Equity Investments: Equity values are subject to market fluctuations, political and economic news, company earnings, and corporate events.
Interest Rate Risk: Fixed income securities are susceptible to interest rate changes affecting their value.
Venture Capital Investments: Investments in start-ups and venture capital carry high financial risk and potential for complete loss. Early-stage companies require further capital that may not be available. Public markets for early-stage companies are volatile.
Important Information
This material is intended for Professional Clients only and is for marketing purposes. Refer to the original article for full important information and regional disclosures.
Contacts
Media:
BlackRock
Christopher Beattie
+1 646 231-8518
[email protected]
Temasek
Keith Lin
+65 6828 2423
[email protected]
