Mitsubishi Corp. plans US$1bn Marunouchi Climate Tech Growth Fund

Mitsubishi Corp. (MC) has partnered with MUFG Bank and other investors to launch a US$1 billion decarbonization fund, Marunouchi Climate Tech Growth Fund which is managed by Marunouchi Innovation Partners Co., Ltd. (MIP), that seeks to invest in European and US. 

Jointly established with MUFG Bank Ltd. (MUBK) and Pavilion Private Equity Co., Ltd. (PPE), the Fund seeks to invest in renewable energy, next-generation fuels, storage batteries, and other areas that directly capture carbon dioxide from the air. 

As of its initial closing, the Fund (including the related investment vehicles for overseas Investors) has raised US$400 million of capital commitment from investors. MIP plans to raise new investment through additional rounds of funding and increase the size of the Fund to US$800 million to about US$1 billion by its final closing.

With the Fund prioritizing investments aimed at spurring growth in companies dedicated to climate tech solutions, MC and MIP shall leverage this opportunity to help commercialize, scale up, and roll out those entities’ cutting-edge technologies. As a result, the Fund should not only help to boost those entities’ corporate value but also support decarbonization and the realization of a carbon-neutral society.