Goldman Sachs Asset Management, the fund arm of Goldman Sachs (GS.N), said on Tuesday it had raised $1.6 billion for its first private equity fund focused on investing in companies providing climate and environmental solutions.
The final close of GSAM's Horizon Environment & Climate Solutions I comes as investors increasingly turn their attention to companies that can help in the world's fight against global warming.
The fund, launched in 2021, provides so-called "growth capital" to companies further along in developing solutions in clean energy, sustainable transport, waste and materials, sustainable food and agriculture and ecosystem services.
"Lots of organisations are trying to operate more sustainably and looking for solutions that enable them to do that," Ken Pontarelli, head of sustainable investing for private markets within Goldman Sachs Asset Management, told Reuters.
GSAM's Horizon fund has made 12 investments so far of between $80 million-$90 million including in Northvolt, a Swedish battery developer and Recover, a company that recycles textile waste to create sustainable fibres.
