Mitsubishi Corp and partners launch $1bn decarbonisation tech fund
Japanese trading house Mitsubishi Corporation, together with partners MUFG Bank and Pavilion Private Equity Co., has launched the Marunouchi Climate Tech Growth Fund.
The fund will be managed by Marunouchi Innovation Partners Co., Ltd. (MIP), a company jointly established by the three partners and will invest primarily in climate tech companies dedicated to decarbonisation.
At its initial closing, the fund has raised $400 million of capital commitment from investors, however, MIP plans to raise up to $1 billion by its final closing.
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According to Mitsubishi Corp, the investments will be aimed at spurring growth in companies dedicated to climate tech solutions by boosting their corporate value, ultimately helping to commercialise and scale up cutting-edge, decarbonisation technologies.
The fund will also leverage the partners’ collective experience and business network to connect investors, secure blue-chip investment opportunities and support the growth of its portfolio companies.
As reported by Nikkei Asia, the fund will invest in startups mainly from the US and Europe, focusing on sustainable fuels, battery storage and floating offshore wind, etc.
The news follows the announcement in April 2023 that Mitsubishi Corp, together with global climate project developer South Pole, has established the NextGen CDR Facility (NextGen) to scale up carbon removal technologies.
NextGen has announced the advance purchase of approximately 200,000 tonnes of CDRs from carbon removal projects that will constitute the world’s largest diversified portfolio of Carbon Dioxide Removals (CDRs) once delivered. The initiative is backed by several industry leaders such as Mitsui O.S.K. Lines, Boston Consulting Group, LGT, Swiss Re, and UBS.
MIP suggests the demand for climate tech investments is likely to grow over the medium to long term, as more funding is needed to accelerate the development of cutting-edge, net zero technologies.
