Kapnative Newsletter Edition 41
MSIM Closes 1GT Climate Private Equity Fund at $750m
Morgan Stanley Investment Management (MSIM) has announced the final close of its 1GT climate private equity fund, securing $750 million in equity capital commitments from a diverse group of institutional investors across Europe, Japan, and North America. The fund, named 1GT, is dedicated to climate-focused investments and aims to collectively avoid or remove one gigaton of carbon dioxide-equivalent (CO2e) emissions by 2050.
1GT will invest in growth-oriented private companies in North America and Europe, focusing on sectors such as mobility, power, sustainable food, agriculture, and the circular economy. The fund’s climate goal is a key feature, with half of the 1GT team’s financial incentives tied to achieving the targeted one gigaton of CO2e emissions avoidance or removal.
"1GT’s investors saw the unique opportunity to invest in a fund with a tangible, transparent, and independently measured climate goal," said Vikram Raju, MSIM’s Head of Climate Private Equity Investing and 1GT. He highlighted that the fund’s climate impact directly influences the team’s compensation structure.
David N. Miller, Head of Morgan Stanley Private Credit and Equity, emphasized the dual focus of the fund: "1GT’s close represents the best of Morgan Stanley’s thinking around delivering fiduciary returns to our clients while providing transparent, transformational climate impact."
As part of MSIM’s $240 billion alternative investment business, 1GT is classified as an Article 9 fund under the Sustainable Finance Disclosure Regulation, which mandates integrating sustainability into its investment process in a binding manner.
The fund’s close demonstrates growing interest in private capital solutions aimed at addressing climate change while delivering strong financial returns.
Apollo Aims to Double Assets to $1.5tn by 2029
Apollo Global Management, a leading global private investment firm, has announced plans to double its assets under management (AUM) to $1.5 trillion by 2029, positioning itself as a major player in global debt underwriting. The bold growth strategy was revealed by CEO Marc Rowan during Apollo’s recent investor day presentation, according to a report by the Financial Times.
Rowan highlighted that Apollo's expansion is in response to a growing trend of companies turning to private capital for financing instead of traditional bank loans. He emphasized that this shift signals the beginning of a new era in finance, with Apollo aiming to be a key capital provider in this evolving landscape. While the firm sees itself as a collaborator with large banks rather than a competitor, it has already formed partnerships with major institutions such as Citigroup and BNP Paribas, with plans for more alliances in the future.
“Apollo’s strategy is to provide the capital solutions that companies need in this evolving landscape,” Rowan said. “In every market, banks are being asked to do less, and investors are being asked to do more. We are just at the beginning of this trend.”
Once primarily focused on private equity and leveraged buyouts, Apollo has become a significant force in debt underwriting, leveraging its insurance subsidiary Athene for steady, low-cost capital. Athene currently holds $33 billion in capital reserves, enabling Apollo to pursue a wide range of financing opportunities.
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Apollo is now attracting large corporations like Air France, Intel, and AB InBev, which are increasingly turning to the firm for capital instead of traditional banking giants like JPMorgan Chase and Goldman Sachs. The firm’s strategy focuses on lending to sectors such as utilities, data centers, and renewable infrastructure, all of which require specialized financing.
Apollo plans to originate $275 billion in debt annually within the next five years, potentially surpassing some of the largest global debt underwriters. For context, JPMorgan Chase led the market in 2023, handling $268 billion in corporate debt and securitizations, according to LSEG data.
Following the announcement, Apollo’s shares surged by 5%, pushing its total return for the year to nearly 43%.
Ares and Joe Tsai Close to $8.1bn Stake Deal in Miami Dolphins
Ares Management, a leading private equity firm, along with billionaire Joe Tsai, are in advanced negotiations with Miami Dolphins owner Stephen Ross to acquire stakes in the NFL team and related assets in a deal that would value the business at $8.1 billion, according to a report by Bloomberg.
The potential transaction would see Ares Management acquire a 10% stake in a package that includes the Dolphins, Hard Rock Stadium, and the Miami Grand Prix. Joe Tsai, owner of the NBA’s Brooklyn Nets and WNBA’s New York Liberty, is also reportedly purchasing an additional 3% stake through his family office, Blue Pool Capital.
If finalized, this would mark the first private equity deal since the NFL amended its ownership rules in August, allowing institutional investors to buy stakes in franchises. The league’s new policy permits private equity firms to own up to 10% of any team, with a minimum investment hold of six years. The rule change was designed to attract new capital and drive up franchise valuations, while offering team owners more financial flexibility.
Ross and the Dolphins are being advised by BDT & MSD Partners, with the deal expected to be presented for approval at the NFL’s December owners meeting. However, negotiations are ongoing, and the terms of the agreement could still change or fall through.
Ross, who purchased 50% of the Dolphins from Wayne Huizenga in 2008 for $550 million, was reportedly in talks earlier this year with Citadel CEO Ken Griffin about a potential stake purchase, but those discussions did not result in a deal.
Ares Management is one of four private equity groups approved to invest in NFL teams, alongside Arctos Partners, Sixth Street Partners, and a consortium including Blackstone Inc., Carlyle Group Inc., CVC Capital Partners, and others.