Apollo’s $100 billion sustainable investing platform goes beyond private equity

Apollo Global Management is increasing the firepower behind its decarbonization efforts to the tune of $100 billion.

The asset manager plans to deploy capital through a new platform dedicated to the energy transition and decarbonisation of industrial sectors by 2030, highlighting a trend that has become a top priority for companies.

Apollo, which manages nearly $500 billion in assets, unveiled plans for its sustainability platform last week in hopes it will shape investments across the business, including transactions. credit and real estate.

“When you talk about energy transition, it’s a theme, not a sector; it permeates so much of what we all do,” said Olivia Wassenaar, an Apollo investor who was just promoted to head of the company’s sustainable investing initiative. “So for us, it made sense to come up with a platform approach so that we were thoughtful and coordinated to find the best source of capital to meet the needs of businesses and communities around the world.”

Other major private equity firms have also allocated billions of dollars to impact investing goals, with the aim of strengthening their environmental, social and governance reach.

TPG announced an initial $5.4 billion closing of its Rise Climate fundchaired by Hank Paulson, former Treasury Secretary and CEO of Goldman Sachsthis past July. The company aims to raise at least $7 billion for the vehicle.

Since then, the fund has taken a number of steps, including the acquisition of a newly created decarbonization company and a $500 million stake in Nextracker, a solar tracking and software solutions company.

In January, Blackstone launched a Sustainable Resources Lending Platform, focused on investing and lending to renewable energy companies and those supporting the energy transition.

The Carlyle Group established a sustainable infrastructure platform called “Copia Power” focused on developing, owning and operating environmentally sustainable infrastructure in the United States last July. The company also announced its commitment to achieving net zero greenhouse gas emissions by 2050 or sooner across all of its investments.

A growing ESG focus and rapid growth in impact investing have been at the forefront of private equity strategy over the past two years, as highlighted in our analyst report ESG, Impact and Greenwashing in PE and VC.

Apollo has already invested $19 billion in its decarbonization strategies over the past five years. It plans to increase that total by $50 billion over the next five years before rolling out more than $100 billion by 2030.

Apollo listed 57 companies in its ESG reporting program worldwide, with total revenue exceeding $119 billion, according to the company’s ESG report released in August.

The unveiling of Apollo’s new platform is part of its forward-looking goal of improving due diligence, with a greater emphasis on improvements and sustainability goals.

“We have a great, deep team that has invested in climate opportunities on our platform,” Wassenaar said.

Wassenaar, who previously served as co-lead for natural resources, will be joined by Joseph Moroney as head of sustainable finance. Other members of this team include Christine Bave and Dan Vogel. Apollo’s broader sustainability strategy will be overseen by Chief Sustainability Officer Dave Stangis.

“It is and will continue to be an integrated, multi-asset approach in everything we do,” Wassenaar said. “This is a company-wide commitment.”

Under the plan, Apollo will focus on offerings in categories including clean power generation, electric mobility and infrastructure, and carbon mitigation. However, Wassenar said the company doesn’t have strict priorities when it comes to lines of business or verticals.

“This is an announcement that’s been years in the making, in terms of how we think about capital deployment and what we think the opportunity presents itself to be,” Wassenaar said.

Related reading: How emerging ESG standards are pushing PEs to adapt

Image selected by Olivier Le Moal/Getty Images

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