MSIM forms new climate change PE-backed platform 1GT

1GT is targeting companies based primarily in North America and Europe.

  • The 1GT team has been investing in companies seeking to mitigate climate change since 2015, having deployed nearly $600 million of capital to date
  • Currently, MSIM has $1.3 trillion in assets under management or supervision as of September 30, 2022
  • Vikram Raju is serving as MSIM’s head of climate investing and the 1GT platform

Morgan Stanley Investment Management has launched 1GT, a private equity platform focused on investments in companies that will mitigate climate change.

1GT is targeting 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.

Vikram Raju, MSIM’s head of climate investing and the 1GT platform, said in a statement, “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 50 percent carry link, we have endeavored to do just that.”

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.