When it comes to fighting climate change, there’s a lot of talk. And often, that’s it. There was certainly a lot of chatter at Climate Week in New York City last week. But some firms, individuals, and organizations are trying to focus on more action, too. And one little-known, New York-based investment firm—which invests both in real assets and venture-backed startups—is planning to put some of its fund managers’ money behind organizations addressing climate solutions.
Aligned Climate Capital, a four-year-old firm, told me they will donate 3% of the carried interest—the profits that fund managers make from the returns of a fund—from their new venture fund to three climate-focused nonprofits. The firm is currently in the process of raising its second venture fund, and intends to raise $150 million. Aligned’s managing director and COO Brendan Bell tells me they’ve raised about half of that so far, with a final close planned for March (filings show they’ve raised about $55 million as of September). Among the investors in Aligned’s new fund is former Google CEO Eric Schmidt’s foundation, The Schmidt Family Foundation, which invested $3 million, senior associate Roman Torres told me via email. Bell said that they plan to donate a percentage of carry in future funds, too.
