Singaporean holding company, Temasek, and American multinational investment management corporation, BlackRock, are reportedly set to enter a partnership agreement for investing in private organizations. These enterprises offer technologies and solutions which will help in the reduction and potential elimination of carbon emissions.
Reportedly called “Decarbonisation Partners”, the deal will roll out a series of early growth PE investment funds and late stage venture capital that will focus on the acceleration of decarbonization.
As per reliable sources, the agreement has a fundraising target of $1 billion for its initial fund, comprising capital from Temasek and BlackRock. The finances will be staffed by employees from both the companies, in addition to a dedicated team that has been recruited for sourcing and carrying out investments and managing the portfolio.
Possible targets of deployment comprise battery storage, emerging fuel sources, and autonomous and electric vehicle technologies. Investments in manufacturing and building sectors are also envisaged.
As per a joint statement, Temasek and BlackRock together intended to commit a sum of $600 million in initial capital for investing in funds launched by the agreement. The companies added that the funds would also secure third-party capital from investors who are looking to gain long-term sustainable financial returns and are dedicated towards achieving a net-zero world.
According to Dilhan Pillay, the CEO of Temasek International, the partnership was one of the numerous steps taken by the sovereign wealth fund. These steps were being taken for following through on the company’s commitment towards halving greenhouse gas emissions from its portfolio by 2030. The commitment intends to ultimately move towards net-zero emissions by 2050, added Pillay.
In the opinion of Larry Fink, the Chair and CEO of BlackRock, the world cannot fulfil its net zero ambitions without transformative innovation. Fink further added that decarbonization technologies and solutions are required to be scaled if they are to transform the global economy. For doing that, these solutions require well-managed and patient capital for supporting their vital objectives, asserted Fink.
Source credit: https://www.ipe.com/news/blackrock-temasek-form-vc-pe-decarbonisation-partnership/10052169.article
