Generation Investment Management, the sustainable investment firm chaired by former US vice president Al Gore, has closed its second private equity fund at more than $1bn.
Sustainable Private Equity Fund II, together with related co-investment vehicles, raised the sum from a broad base of institutional investors, Generation said in a statement on Tuesday.
The fund had collected $800m as of last July, according to its annual report, before climbing past the $1bn mark at final close.
Generation's strategy targets what it calls "sustainability platforms" - large, established businesses it believes can drive sustainability progress across entire industries while delivering high growth.
Three deals have been struck from the fund so far: Octopus Energy, Britain's second-largest domestic energy supplier, Kraken, the technology platform spun out of Octopus in December at a $8.6bn valuation, and IFS, a Swedish software provider to manufacturing and construction firms.
Tom Hodges, co-head of private equity at Generation, said the fund reflects a long-held conviction that transformation happens at "the systems layer."
"The companies that operate as the backbones of their industries - running the workflows, the data and the distribution - are where sustainability is amplified and gets delivered at scale," he said.
Generation did not name individual investors in the new fund. PitchBook data lists Sweden's national pension fund, Fjärde AP-fonden, among its limited partners.