Climate Finance | January 12, 2023

Goldman Sachs climate fund hits $1.6 billion

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, January 12 – Goldman Sachs Asset Management has raised $1.6 billion for its climate-focused Horizon fund.

Horizon makes growth-stage investments of up to $100 million in clean energy, sustainable transport, waste and materials, food and agriculture, and water. A key focus: companies helping other companies decarbonize with “products and services that enable other organizations to cost-effectively meet their sustainability objectives,” GSAM’s Ken Pontarelli told Reuters.

The asset manager enters a market that includes $7 billion funds from TPG Rise Climate and Brookfield and a $3.5 billion fund from General Atlantic.

Other large climate fund peers include Lightrock, which raised €860 million ($838 million) for its first climate impact fund in October. Climate Asset Management is in the market with a billion-dollar natural capital fund.

GSAM had targeted $1 billion when it launched the fund in 2021. Horizon counts Danish insurance company PFA Pension among its backers.

Horizon has made a dozen investments, including Sweden-based battery manufacturer Northvolt, which raised $2.7 billion in 2021 from Horizon and a raft of European pension funds to build a “gigafactory” for battery production.