Nuveen’s new climate-strategy fund closes with $200 million commitment

Nuveen has closed on is second global climate inclusion private equity strategy, reeling in $200 million from a mix of global investors, including Danish pension fund Velliv.

Nuveen, the $1.2 trillion global asset manager, said its second climate inclusion strategy will build on the firm’s first private equity impact strategy of “aiming to generate strong financial returns and address two of the greatest sustainable development challenges: climate change and inequality.”

It will seek to target climate inclusion around the world in key global growth markets, seeking to mitigate climate change, provide access to basic financial services and leverage relationships with low income consumers to build resilience to climate change.

“We believe that climate change and inequality, two of the biggest challenges the world faces, can be addressed by commercial businesses. The changing regulatory environment and shifts in consumer sentiment means overcoming those challenges also presents a compelling investment opportunity,” said Rekha Unnithan, head of private equity impact at Nuveen, in a release announcing the new fund.

Nuveen said its private equity impact team takes an active role in driving financial, social and environmental results by leveraging board seats and shareholder positions in the companies in which it invests.

The first iteration of Nuveen’s private equity impact series also secured more than $200 million and has invested in eight global businesses since its launch in 2021. Its latest investment is in Perch Energy, a clean energy technology platform and community solar servicer looking to expand access to renewable energy.

“We have been investing in Nuveen’s impact funds for many years, as we believe that impact investing demonstrates how generating returns can go hand in hand with addressing the world’s challenges, whether they are social, environmental or a combination of both,” said Anders Stensbøl Christiansen, chief investment officer at Velliv.

Nuveen is a pioneer in impact investing, making its first impact investment in the 1980s, and has since invested over $500 million in direct and indirect private equity capital in alignment with the United Nations Sustainable Development Goals. Nuveen’s Global Climate private equity series meets the requirements of the EU’s Sustainable Finance Disclosure Regulations Article 9, and is a signatory to the Operating Principles for Impact Management.

Nuveen manages over $5.8 billion across all of its public and private markets impact investing strategies on behalf of a broad range of institutional investors and its parent company TIAA.

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