Two new mega-funds pile into climate-focused fund frenzy

TPG has amassed private equity's largest war chest dedicated to technology aiming to curb climate change amid a growing scramble by investors drawn to one of the world's foremost global challenges.

Texas-based TPG said Tuesday it has landed $5.4 billion in funding for the first close of its new Rise Climate Fund, and is still targeting a total of $7 billion, up from an initial goal of $5 billion. Hank Paulson, formerly a Treasury secretary and CEO of Goldman Sachs, serves as executive chairman of the fund.

On the same day, Brookfield Asset Management announced the initial closing of a $7 billion climate-focused fund that has a goal of achieving a net-zero carbon economy. Dubbed the Brookfield Global Transition Fund, the vehicle will be hard-capped at $12.5 billion. If it meets its target, the fund would be the largest devoted to climate sustainability, according to PitchBook data.