Morgan Stanley Investment Management's Alternative Investment Partners Private Markets business (AIP Private Markets) has launched a $110m AuM Global Climate Impact fund, which seeks to "address critical climate issues."
Launched in collaboration with the US congregations of Dominican Sisters, the globally diversified offering will provide investment solutions which focus on critical climate issues and aid marginalised communities disproportionately affected by these issues.
This fund expands upon the firm's $800m impact unvesting platform, which was launched in partnership with the Morgan Stanley Institute for Sustainable Investing in 2014, and aims to "drive positive social and environmental impact" in sectors including mobility, energy, food and agriculture, resource efficiency and the circular economy.
Every dollar invested in our climate program will seek to have a concrete climate impact measurement ranging from tonnes of CO2 emission offset and litres of water saved, to reduction in air pollution levels."
In an attempt to address these issues, the strategy invests holistically, anywhere from early stage investments in energy efficiency software to mature opportunities such as fruit producers with hydroponic irrigation systems.
Vikram Raju, head of impact investing at AIP Private Markets, Morgan Stanley Investment Management, said: "AIP Private Markets' Impact Investing platform has enable us to catalyse private sector capital to address some of the most critical challenges faced by the planet and people in need,
"Every dollar invested in our climate program will seek to have a concrete climate impact measurement ranging from tonnes of CO2 emission offset and litres of water saved, to reduction in air pollution levels, in addition to generating compelling private markets returns."
Richard Lockwood, head of distribution, Northern Europe, MSIM, added: "We are delighted with the interest shown by such a broad and global investor group, which includes private and public pensions, faith groups, healthcare systems, foundations and endowments, family offices and high net worth individuals.
"There is a palpable need from investors for leading and innovative solutions in impact investing, and we are proud to close another successful fund-raise."