Press Release
  •  
November 21, 2022

Morgan Stanley Investment Management Launches 1GT Growth-Oriented Private Equity Platform Focused On Companies Seeking To Mitigate Climate Change

 

Press Release

Morgan Stanley Investment Management Launches 1GT Growth-Oriented Private Equity Platform Focused On Companies Seeking To Mitigate Climate Change

Morgan Stanley Investment Management Launches 1GT Growth-Oriented Private Equity Platform Focused On Companies Seeking To Mitigate Climate Change

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November 21, 2022

 
 
  • The 1GT growth-oriented private equity platform (1GT or the Platform) is focused on making investments in companies seeking to mitigate climate change
  • 1GT is seeking to invest in companies that will collectively avoid or remove one gigaton of CO2-equivalent emissions from the Earth’s atmosphere from the date of the Platform’s investment through 2050, the date by which the United Nations has mandated “Net Zero” must be achieved
  • The 1GT team, led by Vikram Raju, MSIM’s Head of Climate Investing, has been making investments in companies seeking to mitigate climate change since 2015 through and alongside several impact-oriented investment vehicles
  • The team’s financial incentives for 1GT will be tied to achieving not only financial returns for 1GT, but also the Platform’s climate objectives

 

LONDON, UK — November 21, 2022 1:00 PM UTC

Morgan Stanley Investment Management (MSIM) announced today that it has launched the 1GT growth-oriented private equity platform (1GT or the Platform) focused on investments in companies that will collectively avoid or remove one gigaton of carbon dioxide-equivalent (CO2e) emissions from the Earth’s atmosphere from the date of the Platform’s investment through 2050, the date by which the United Nations has mandated “Net Zero” must be achieved. Part of MSIM’s $200 billion alternative investments business, 1GT is targeting investments in private companies based primarily in North America and Europe whose products or services enable meaningful improvement in their respective clients’ carbon footprint. The 1GT team has been investing in companies seeking to mitigate climate change since 2015, having deployed nearly $600 million of capital to date through and alongside several impact-oriented investment vehicles. For 1GT, the team will tie a portion of its incentive compensation to the underlying investments collectively catalyzing one gigaton avoidance/reduction in CO2e emissions from the date of 1GT’s investment through 2050.

Vikram Raju, MSIM’s Head of Climate Investing and the 1GT Platform, commented: “As COP27 concludes, it is clear now more than ever that we need to radically alter the traditional model of private equity impact investing in three ways. First, we need to seek climate goals that are tangible rather than anecdotal and ambitious rather than tangential. Second, we believe that in order to catalyze meaningful progress in climate solutions, a significant portion of financial incentives should be linked to such climate goals. Third, the measurement of those goals should be transparent to limited partners. With our 1GT goal and linked financial incentives for the team, we have endeavored to do just that.”

1GT is targeting investments in private companies that will deliver a meaningful financial return and measurable positive environmental impact across the mobility, power, sustainable food and agriculture, and circular economy themes. The Platform intends to leverage Morgan Stanley’s considerable resources to partner with portfolio companies to help monitor ESG risks, increase climate change mitigation, improve ESG monitoring and reporting, and pursue earnings growth, multiple expansion and enhanced exit potential.

Navindu Katugampola, MSIM’s Global Head of Sustainability, commented: “1GT is a further example of MSIM’s commitment to providing innovative solutions and market-leading products that help our clients address time-critical sustainability issues while meeting fiduciary obligations to their investors.”

The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.

 

For Professional Investor use only. This communication is only intended for and will only be distributed to persons resident in jurisdictions where such distribution or availability would not be contrary to local laws or regulations.

 

UK: Issued in the UK by Morgan Stanley Investment Management Ltd (“MSIM Ltd). MSIM Ltd is authorised and regulated by the Financial Conduct Authority. Registered Office: 25 Cabot Square, Canary Wharf, London E14 4QA.

 

European Economic Area (“EEA”): Issued in EEA countries by MSIM Fund Management (Ireland) Limited (“MSIM FMIL”). Registered Office: The Observatory, 7-11 Sir John Rogerson's Quay, Dublin 2, D02 VC42, Ireland. Registered in Ireland as a private company limited by shares under company number 616661. MSIM FMIL is regulated by the Central Bank of Ireland.  

 

Switzerland: Issued by Morgan Stanley & Co. International plc, London, Zurich Branch (“MSIP Zurich”). MSIP Zurich is authorised and regulated by the Swiss Financial Market Supervisory Authority (“FINMA”). Registered Office: Beethovenstrasse 33, 8002 Zurich, Switzerland, Telephone +41 (0) 44 588 1000.

 

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,200 investment professionals around the world and $1.3 trillion in assets under management or supervision as of September 30, 2022. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in 41 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions, and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.

 
 
 
The AIP Private Markets team provides investors access to broadly diversified and thematic multi-manager portfolios, secondaries, co-investments, impact investing strategies and custom solutions.
 
 

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