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Decarbonization Partners Fund I passes $1 bln target

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Investors include insurer Allstate, lender BBVA

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Aims to accelerate transition to a low-carbon economy

By Simon Jessop

LONDON, April 25 (Reuters) - Climate-focused investor

Decarbonization Partners, a tie-up between BlackRock ( BLK ) and

Singaporean state investment firm Temasek, said on Thursday it

had raised a higher-than-targeted $1.4 billion for its first

fund.

Others to back the venture and late-stage growth equity

fund, which will focus on companies that can help accelerate the

transition to a low-carbon economy, include U.S. insurer

Allstate, Spanish lender BBVA and energy firm TotalEnergies.

In total, more than 30 institutional investors from 18

countries invested in the fund, the firm said in a statement,

including public and private pension funds, sovereign wealth

funds and family offices, helping it pass a $1 billion target.

The fund, Decarbonization Partners Fund I, has already

invested in seven companies including low-carbon hydrogen firm

Monolith, biotechnology firm MycoWorks and electric battery

material firm Group14.

"There is enormous demand for energy infrastructure as many

countries seek to transition to lower-carbon sources of power

while also achieving energy security," said BlackRock ( BLK ) Chief

Executive Larry Fink.

Decarbonization Partners would identify "generational

investment opportunities in climate technology" to lower their

cost to "enable a more affordable energy transition, and

generate long-term financial returns for our clients", he said.

As a so-called "dual purpose" fund, it aims to achieve good

returns as well as "intentional, material and measurable

decarbonization outcomes", and aims to provide portfolio

companies with strategic, technical and other help, it added.

"Addressing the climate crisis requires innovation at scale,

as well as significant and sustained financial resources to

enable that. No single entity can do it on their own," said

Temasek Chief Executive Dilhan Pillay.

"We're pleased and encouraged to see many other partners and

investors coming on board ... their participation will support

the acceleration of innovative solutions for real-world

decarbonization at scale."

Launched in 2022, the firm now has more than 25 staff in

offices in New York, San Francisco, Singapore, London, Paris and

Houston.