Type: Aligned Investments
Topic: Agriculture, Renewable Energy, Water
Status: Current
Smart entrepreneurs know that land and water are finite resources and industrial “waste” can have value. The Alternative and Renewable Technologies Fund seeks to buy large positions in innovative companies riding this wave.
Investment
$10 million; originated in 2014
Rationale
A private equity fund investing in companies that are responding to resource scarcity and environmental challenges with new industrial applications. It focuses on the agricultural, energy, and materials sectors. TPG incorporates environmental, social and governance analysis into its investment process, and reports on the environmental impacts of investee companies.
Returns
Financial Returns: Too early to evaluate, fund is in acquisition phase.
Social & Environmental Impact: TPG provides impressive impact reporting. Companies in the fund provide goods and services that reduce water and green house gas emissions. For example, Anuvia’s fertilizers reduce nitrogen runoff into rivers, streams, and groundwater by 50%. This is a direct goal of the Mississippi River Program.
| 2016 | Metric |
| 210,900 | Estimated tons of direct CO 2 -equivalent reductions |
Lessons Learned
McKnight gains valuable insights about emerging technologies and market trends from our regular meetings with the Alternative and Renewable Technology fund managers. In 2018 we are looking forward to hearing their views on next generation carbon sequestration and storage, the potential of carbon credit markets in the US, and new directions in agricultural fertilizers.
Disclaimer of Endorsement: The McKnight Foundation does not endorse or recommend any commercial products, processes, or service providers.
Last updated 11/2017