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Private Equity

TPG, Apollo make separate impact investing plays

TPG Rise has acquired a newly formed decarbonization company and Apollo Global Management is buying Tenneco, as PE firms expand their commitment to back businesses that help achieve their ESG goals.

TPG‘s global impact investing platform has acquired a newly formed decarbonization company, as PE firms expand their commitment to back businesses that help achieve their environmental, social and governance goals.

Bluesource, a carbon credit developer, and Element Markets, which focuses on renewable natural gas marketing and environmental commodities, are merging to form what TPG described as the largest marketer and originator of carbon and environmental credits in North America.

Capital for the deal will come in part from TPG’s Rise Climate Fund; the firm announced the vehicle’s first close on $5.4 billion this past July. Hank Paulson, formerly a Treasury secretary and CEO of Goldman Sachs, serves as executive chairman of the fund.

On the same day as the merger was announced, Apollo Global Management also unveiled an impact investment play, buying Tenneco, a vehicle emissions-control systems specialist, in a deal valued at $7.1 billion.

Through the takeover, Apollo will pay $20 per Tenneco share, representing a 100.4% premium over the company’s Feb. 22 closing price.

Featured image by Galeanu Mihai/Getty Images

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