Apollo announced the formation of Apollo Clean Transition Capital, an investment strategy that intends to redefine the capital market for climate solutions. ACT Capital seeks to meet the wide-ranging capital needs for the transition to clean energy and sustainable industry by providing competitive, flexible, and patient financing to the global market, supporting corporates in their transition to clean energy. The strategy launches with $4 billion in deployable capital from Apollo affiliates and strategic partners and will enable investment into a diversified global portfolio of yield and hybrid investments.
Last year, Apollo launched its Sustainable Investing platform, which targets deploying $50 billion in clean energy and climate capital by 2027 and sees the opportunity to deploy more than $100 billion by 2030. ACT Capital will work alongside other strategies across Apollo’s sustainable investing platform toward the $50 billion target. In its first year, Apollo’s sustainable investment platform deployed over $6 billion toward its target.
“We believe ACT Capital is a premier financing solution for companies around the globe who require significant, flexible capital to support their energy transition efforts. We are thrilled to extend our long track record in this area and expand our commitment to driving a more sustainable future, recognizing the urgent need for climate capital deployment,” said Apollo Co-President Scott Kleinman.
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Given the approximately $4.5 trillion in investments needed annually to achieve the global energy transition by 2050, ACT Capital seeks to accelerate the pace of climate and transition capital deployment.ACT Capital will leverage the breadth of Apollo’s sourcing capabilities across market cycles to target global opportunities in energy transition, industrial decarbonization, sustainable mobility, sustainable resource use, and sustainable real estate. This dedicated strategy will employ the expertise of Apollo’s broader sustainable investing platform, as well as the Firm’s long-standing sustainability ecosystem.
“We believe ACT Capital is well-positioned to address the significant gaps that exist in the capital markets for climate and transition financing. Our ability to deploy capital at scale – across sectors and strategies – can provide attractive, diversified exposure to this generation-defining opportunity to address climate change,” said Olivia Wassenaar, Apollo’s Head of Sustainable Investing. “We sought to build this transformational platform to meet what we view as an underserved need in the climate finance marketplace for both investors and industry participants.”