Climate PE: Are investors warming up or cooling off?
Are climate-focused PE funds here to stay? Our newly developed dataset reveals that from 2009 through Q1 2025, generalist and specialist funds investing in the space raised a combined $488.1 billion, with specialist fundraising activity accelerating significantly in recent years. Despite political headwinds, macroeconomic challenges, and growing competition, climate PE funds across the globe continue to attract commitments. We forecast climate-investing PE fund AUM to grow from $463 billion at the end of 2024 to over $560 billion by the end of the decade.
This analyst note examines the forces behind the continued expansion of the climate PE universe: improving fund returns, technological development, maturing GP expertise, LP interest rooted in long-term secular trends, and more. It breaks down fundraising trends, performance drivers, and the major asset allocators and fund managers investing in the space.
Table of contents
| Key takeaways | 1 |
| Introduction | 2 |
| The climate PE fund universe | 4 |
| A closer look at specialists | 7 |
| Climate PE fund performance | 10 |
| Outlook | 14 |
| Market map | 16 |
| Methodology | 20 |