Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe
Features
Series
Themes
Community
Data
Subscribe Log In
More

How Aligned Intermediary makes climate deals work for institutional investors



A new type of financial advisory firm is packaging clean-energy deals to make them attractive and big enough to grab hundred-million dollar checks from pension and sovereign wealth funds.

The awkwardly titled Aligned Intermediary (AI), led by Peter Davidson, former head of the Department of Energy’s loan guarantee program, has landed at least nine big clients that have collectively committed to deploy more than $1.4 billion toward climate solutions. Clients are already moving money, according to a Forbes post from Dr. Bob Eccles, the founding chairmen of the Sustainability Accounting Standards Board.

In late December 2016, an unidentified client made a $50 million investment in a western U.S. water infrastructure project, Eccles said in his post. And, six months later the University of California Regents, also an AI client, put $100 million into Pattern Energy, a North American renewable projects developer.

Other domains

Climate deals are often too risky, too small, or too opaque for the institutional giants. AI surfaces and seeds climate and clean-energy projects, maps markets and coordinates capital among investors with varying risk-return-impact appetites to make deals work for its large clients. The firm also helps investors track impact and benchmark their climate investments.

AI co-founder Ashby Monk of Stanford University told ImpactAlpha in an email that such intermediaries could provide a model for unlocking funds for other system-wide challenges including resource scarcity, inequality and the 17 Sustainable Development Goals.

“The idea of an Aligned Intermediary being applied in other domains is totally possible,” Monk said. In fact, he and Stanford’s Rajiv Sharma wrote a book on it (see Reframing Finance).

You might also like...