Morgan Stanley Investment Management (MSIM) announced today that it has raised $750 million at the final close of 1GT, its climate solutions-focused private equity strategy, targeting the elimination of 1 gigaton of CO2 emissions by 2050.

Vikram Raju, MSIM’s Head of Climate Private Equity Investing and 1GT, said:

“We are pleased to have arrived at the final close of 1GT, a highly focused fund that is providing capital at the critical growth stage to companies whose products and services enable meaningful reduction in the global carbon footprint. 1GT’s investors saw the unique opportunity to invest in a fund with a tangible, transparent, and independently measured climate goal, which directly ties to the team’s incentive compensation.”

Launched in November 2022, 1GT targets growth-oriented investments in companies in North America and Europe, across sectors and themes including mobility, power, sustainable food, agriculture and the circular economy.

The fund is classified as Article 9 under the EU’s SFDR regulation, and half of the 1GT team’s compensation is tied to the goal of achieving the avoidance or removal of one gigaton of CO2e emissions by 2050.

David N. Miller, Head of Morgan Stanley Private Credit and Equity, said:

“1GT’s close represents the best of Morgan Stanley’s thinking around delivering fiduciary returns to our clients while providing transparent, transformational climate impact. We are also able to deliver to our growth stage investees the insight, expertise and access that come from being a leading global financial services firm.”