Nuveen, which manages $1.2 trillion of assets, has completed the first close of its second global climate inclusion private equity strategy.
The firm raised around $200 million from a mix of global investors, including Danish pension fund Velliv.
Nuveen’s climate inclusion strategy focuses on climate change and inequality globally. Part of the strategy focuses on access to basic financial services for low income consumers and aiding them to build resilience to climate change.
Nuveen’s private equity impact team says it has developed a proven approach to impact management, engaging companies to ensure they integrate climate considerations, and build products for low income consumers.
The first iteration of Nuveen’s private equity impact series secured over $200 million and invested in eight global businesses since its launch in 2021. One investment is Perch Energy, a clean energy technology platform and community solar servicer looking to expand access to renewable energy.
Rekha Unnithan, head of private equity impact at Nuveen, said: “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.
“As a longtime leader in impact investing, we look forward to leveraging our years of experience and $1bn track record to target positive returns for our investors and the world we live in.”
Anders Stensbøl Christiansen, chief investment officer at Velliv, said: “At Velliv, 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.
“Nuveen Private Equity Impact enables Velliv to achieve a global reach in our impact portfolio, delivering returns and measurable impact across several SDGs through both socially and environmentally focused investments.”
Nuveen said it made 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 now manages over $5.8 billion across all of its public and private markets impact investing strategies.
