Growth Equity
TPG expands clean energy exposure with investment in Intersect Power
June 28, 2022
TPG's investment in green energy developer Intersect Power, announced on Tuesday, is the latest step in the private equity firm's climate tech and renewable energy strategy and comes at a time when PE investors are pouring increasing amounts of cash into climate-oriented financing.
TPG's Rise Climate Fund led the $750 million growth equity investment, and was joined by existing investors Climate Adaptive Infrastructure and Trilantic Energy Partners North America.
The $7.3 billion fund, which closed earlier this year, is overseen by TPG's founding partner Jim Coulter and former US Treasury Secretary Hank Paulson. It has been quickly deploying capital through growth equity investments since it was launched in 2021.
The investment in Intersect Power is among the largest TPG Rise Climate has made. The largest was a $1 billion equity financing the fund led into a partnership with Tata Motors, India's leading electric vehicle manufacturer, last year. Abu Dhabi's ADQ joined in the Tata deal. In all, the fund has completed nine deals since it launched.
It also backed the solar tracking company Nextracker and the merger of Bluesource and Element Markets, which was formed to create the largest marketer and originator of carbon and environmental credits in North America. More recently, TPG invested $300 million in Summit Carbon Solutions, a carbon storage project developer.
TPG's Rise Climate Fund led the $750 million growth equity investment, and was joined by existing investors Climate Adaptive Infrastructure and Trilantic Energy Partners North America.
The $7.3 billion fund, which closed earlier this year, is overseen by TPG's founding partner Jim Coulter and former US Treasury Secretary Hank Paulson. It has been quickly deploying capital through growth equity investments since it was launched in 2021.
The investment in Intersect Power is among the largest TPG Rise Climate has made. The largest was a $1 billion equity financing the fund led into a partnership with Tata Motors, India's leading electric vehicle manufacturer, last year. Abu Dhabi's ADQ joined in the Tata deal. In all, the fund has completed nine deals since it launched.
It also backed the solar tracking company Nextracker and the merger of Bluesource and Element Markets, which was formed to create the largest marketer and originator of carbon and environmental credits in North America. More recently, TPG invested $300 million in Summit Carbon Solutions, a carbon storage project developer.
A snapshot of TPG Rise Climate's investments
The moves come at a time when private equity investors are increasing their investments in companies seeking to address climate change with renewable energy and other low-carbon technologies. The sectors have been among the most favored by large institutional investors and wealth advisers, even as public markets have been hit by volatility and the possibility of a recession looms.
Brookfield Asset Management set itself up for investments in decarbonization opportunities via the launch of its Global Transition Fund, which raised $15 billion. It had recently pursued an investment in Australian energy giant AGL Energy, but gave up on that deal after its second takeover bid was rejected.
Intersect Power said the new investment will allow it to scale its renewable energy portfolio and support its expansion into new markets, including green hydrogen and wind energy, according to an announcement. The company also said it aims to expand its clean-energy projects to over 8 gigawatts of production from the current 2.4 GW, and add 1GW of green hydrogen production on top of its solar and battery storage portfolio.
Featured image by Andriy Onufriyenko/Getty Images
Brookfield Asset Management set itself up for investments in decarbonization opportunities via the launch of its Global Transition Fund, which raised $15 billion. It had recently pursued an investment in Australian energy giant AGL Energy, but gave up on that deal after its second takeover bid was rejected.
Intersect Power said the new investment will allow it to scale its renewable energy portfolio and support its expansion into new markets, including green hydrogen and wind energy, according to an announcement. The company also said it aims to expand its clean-energy projects to over 8 gigawatts of production from the current 2.4 GW, and add 1GW of green hydrogen production on top of its solar and battery storage portfolio.
Featured image by Andriy Onufriyenko/Getty Images
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