• Bahrain-based Investcorp, a global alternative investment management firm, has launched a $750 million climate solutions investment platform, targeting growth-stage companies operating across North America, Europe, the Middle East and Asia.
• It will target companies that typically offer solutions that help tackle decarbonisation and address the impacts of climate change. 
• The firm plans to make 10 to 15 investments in climate tech companies in the next four to five years, with each receiving between $50 million and $75 million in funding.

Source: The National

Alternative asset manager Investcorp has launched a $750 million climate-focused investment platform that aims to invest in companies focused on developing innovative products and technology to reduce emissions globally.

It plans to make 10 to 15 investments in such companies in the next four to five years, with each funding round in the range between $50 million and $75 million, Investcorp co-chief executive Rishi Kapoor told The National.

Investcorp, which counts Mubadala Investment Company as its biggest shareholder, will invest in companies in North America, Europe, the Middle East and Asia with proven technology that supports decarbonisation efforts, especially in the Global South.

“We feel that the appeal, and more importantly, the need for these products and services is most acute in the Global South because that is the part of the world that is arguably facing a disproportionate share of the risk associated with climate change,” Mr Kapoor said.

“Through our investment in these companies all over the world, we can help them lower their economic costs through accelerated growth and take them to the Global South at a much more affordable and attractive price point and therefore help the ... economies to mitigate the risk of climate change.”

Bahrain Mumtalakat Holding Company, the country's sovereign wealth fund also confirmed that it is partnering with Investcorp to anchor the platform.

Investcorp's announcement comes as Dubai hosts the Cop28 climate conference and the world discusses ways to boost investments in decarbonisation technologies.

Global investment in energy transition technologies must quadruple to $35 trillion by 2030 to stay in line with commitments made under the Paris climate agreement, according to a recent report by the International Renewable Energy Agency (Irena).

Investments in renewable energy technologies reached a record of $1.3 trillion last year but that figure must rise to about $5 trillion annually to limit temperature increases to 1.5ºC above pre-industrial levels, the Abu Dhabi-based agency said.

Meanwhile, investments of up to $13.5 trillion will be needed by 2050 to help hard-to-abate sectors such as production, energy and transport to move to a sustainable and carbon-neutral future, a World Economic Forum report said this week.

Investcorp, with $50 billion of assets under management, aims to become net zero by 2050. It also plans to support companies that it has invested in to decarbonise their operations with climate-friendly policies.

“We have aligned ourselves, 100 per cent using our own proprietary responsible investment framework, with the companies that we invest into, and have them lay out and map an agenda towards decarbonisation recognising full well that we own these companies for a relatively short period of time, typically around four or five years," Mr Kapoor said.

“But setting them on that path is the important bit and during that journey with us, carefully monitoring and measuring their actual progress in terms of emissions reduction against targets and reporting those is another important element.”

The company has investments in more than 70 companies around the globe in sectors such as technology, real estate, e-commerce and infrastructure.

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