Conversation with H.E. Majid Al Suwaidi, CEO of ALTÉRRA | Global Investors' Symposium São Paulo

Fund Structure and Capital Mobilization

• Altera was established at COP28 as the world's largest private climate investment fund with a target of $30 billion.
• The fund launched with an initial commitment of $6.5 billion, making it one of the fastest-raised climate funds globally.
• Primary founding partners include Brookfield, TPG, and BlackRock, selected to demonstrate immediate capital deployment and commercial viability.
• Altera operates a dual-mandate goal: to deploy its $30 billion while mobilizing an additional $250 billion from external private sector investors.
• The $30 billion capital pool is split into two distinct strategies:
  • Transformation Fund ($25 billion): A commercially minded fund deployable anywhere globally.
  • Global South Fund ($5 billion): A mandate requiring investment strictly in the Global South.
• Mobilization Metrics:
  • Leveraging the Brookfield partnership (CTF fund), Altera has achieved a 9x capital multiplier.
  • Leveraging the TPG partnership (GSI fund), Altera has achieved a 4x to 5x capital multiplier.

Investment Strategy and Pillars

• Altera focuses on four core investment pillars:
  • Clean Energy: The primary focus, explicitly including nuclear energy, to allow for scalable deployment and immediate impact.
  • Climate Technology: Investment in emerging tech solutions.
  • Industrial Decarbonization: Funding for heavy industry transitions.
  • Sustainable Living: A catch-all category covering adaptation, water security, and agriculture.
• The strategy prioritizes investments that generate commercial returns while simultaneously driving climate impact, ensuring a "flywheel" effect to attract further private capital.
• Recent diversification includes non-renewable sectors, such as tech and software for the aviation industry.

Performance and Market Reception

• Altera reports that investment returns have exceeded sector expectations, countering the narrative that climate investing requires concessionary returns.
• The fund utilizes a proprietary "climate impact framework" to vet investments, providing a stamp of approval that other institutions rely on to meet their own sustainability criteria.
• Demand from other fund managers is high, with many seeking Altera's co-investment to validate their funds against strict climate criteria for institutional investors like pension funds.
• Geographic Footprint: As of the interview, Altera is active across five continents with investments totaling approximately 90 gigawatts of power capacity.

Future Outlook and Strategic Plans

• Long-term Goal: Leverage the initial $30 billion to mobilize $250 billion over a 3-to-5-year horizon.
• Strategy Evolution: The fund plans to transition from simple catalytic capital structures to more complex investment strategies as the fund matures.
• Brazil Focus:
  • Altera has not yet executed a deal in Brazil but is actively engaging with partners to finalize its first investment.
  • The target areas for Brazil include clean energy and industrial decarbonization, leveraging the strong diplomatic and economic ties between the UAE and Brazil.
• COP30 Expectations:
  • Majid Al Suedi expressed high confidence in Brazil's ability to host a successful COP30 due to the country's institutional climate expertise and skilled diplomacy.
  • The objective for the conference is to secure greater national ambition, stronger commitments, and faster action to meet 2030 climate goals.

Historical Context

• Majid Al Suedi founded Altera following his tenure as Director-General of COP28, driven by global feedback that a lack of capital flow to the Global South was the primary barrier to achieving Paris Agreement targets.
• The fund was announced by UAE President Sheikh Mohammed bin Zayed Al Nahyan as a direct solution to the capital mobilization gap identified during international climate negotiations.