UAE’s ALTERRA and BBVA Collaborate on $1.2 Billion Climate Fund
Overview of the ALTERRA Opportunity Fund
DUBAI, Jan 15 (Reuters) – United Arab Emirates climate fund ALTERRA is planning to launch a $1.2 billion co-investment vehicle with Spanish lender BBVA to finance climate-aligned investment globally across infrastructure, private equity and private credit, the two firms said on Thursday.
Investment Focus Areas
BBVA has committed $250 million as a proposed strategic LP to the new vehicle, which was dubbed ALTERRA Opportunity Fund, they said in a joint statement.
Strategic Goals and Collaborations
The fund will invest in climate investments across energy transition, industrial decarbonization, climate tech and sustainable living, focusing on geographies including North America, Latin America and Europe as well as “other growth markets,” they said without providing further details.
Fund Structure and Domicile
ALTERRA, set up in 2023 by the UAE with $30 billion, aims to mobilize $250 billion globally by 2030. It has so far invested mostly through climate and transition funds run by leading global investment firms BlackRock <BLK.N>, Brookfield <BN.TO>, and TPG <TPG.O>.
“The initiative accelerates ALTERRA’s ambition to mobilize third-party capital at scale and expand its global network of institutional collaborators,” the two firms said in the statement.
Once launched and approved, the fund will be domiciled in Abu Dhabi’s financial centre ADGM. It will consolidate existing co-investments from ALTERRA Acceleration Fund into a dedicated structure managed by the Emirati company.
(Reporting by Federico Maccioni, editing by Alexandra Hudson)