Decarbonization Partners – a partnership between BlackRock and Temasek focused on investing in next-generation private companies that support decarbonization – has raised US$1.4 billion at the final close of Decarbonization Partners Fund I, the partnershp’s inaugural late-stage venture capital (VC) and growth private equity (PE) investment fund, far exceeding its primary fundraising target of US$1 billion.  

In addition to commitments from BlackRock, the world’s largest asset manager, and Temasek, the Singaporean sovereign wealth fund, the fund has caught the attention of 30 institutional investors from 18 countries, including public and private pension funds, sovereign wealth funds, insurance companies, corporates and family offices from across Asia-Pacific, North America and Europe.  

Together with capital commitments from a number of Singaporean institutional investors, other investors in the fund include Allstate, BBVA, KIRKBI, Mizuho Bank, MUFG Bank and TotalEnergies.

The fund, launched in 2022, has a dual-purpose investment strategy that “seeks to generate attractive long-term financial returns while investing in companies that are driving intentional, material and measurable decarbonization outcomes”. It has already invested capital into seven innovative decarbonization technology companies.

The sustainable partnership’s team has grown to over 25 members across offices in New York, San Francisco, Singapore, London, Paris and Houston, and has built a robust pipeline of proprietary deal flow, which it says it will continue to execute on in the coming months.

“Decarbonization Partners brings together the best of Temasek and BlackRock to identify generational investment opportunities in climate technology,” notes Larry Fink, BlackRock’s chairman and CEO, “that will help to bring down the green premium, enable a more affordable energy transition and generate long-term financial returns for our clients.”

Dilhan Pillay, Temasek’s CEO, adds: “Addressing the climate crisis requires innovation at scale, as well as significant and sustained financial resources to enable that. No single entity can do it on their own. We’re encouraged to see many other partners and investors coming on board for the partnership’s inaugural fund.”