Clean energy fund manager Aligned Climate Capital really believes in addressing climate change, to the point of donating some profits to three like-minded nonprofit organizations.
The asset manager based in New York and California with $2 billion under management invests in ventures and real assets aimed at decarbonizing the global economy. Its portfolio includes venture capital, solar partnerships and a climate infrastructure joint venture with Ares Management.
In September, Aligned Climate Capital said it will donate 3% of the carried interest in its latest venture capital fund, Aligned Climate Fund 2, to three nonprofit organizations: the Climate Equity Action Fund, the Honnold Foundation and Impact Capital Managers. Each organization will receive 1% of carry, or roughly $900,000 based on current revenue estimates, a spokesman said. The Climate Equity Action Fund provides grants to community-based organizations working to achieve equitable clean energy futures for communities, including clean energy jobs and public health.The Honnold Foundation provides grants to organizations that increase solar energy access worldwide. Founder Alex Honnold, a professional rock climber, said he has seen firsthand how solar energy helps marginalized communities around the world invest more into education, health and workforce development. Impact Capital Managers, a membership association of private capital impact funds, works to scale up the private capital impact investing marketplace, and its members must meet certain criteria including standards on impact measurement and management.
"The market alone can't solve the climate crisis," said Aligned Climate Capital CEO Peter Davidson, and the three organizations "are doing work to address the impacts of climate change that are not being addressed by the market," he said in the announcement.
The profit-sharing idea could be a model for other climate investors, said Aligned Climate Capital COO Brendan Bell. "If you say you are a climate investor, you need to put your money where your mouth is," he said.