The G7-backed Partnership for Global Infrastructure and Investment is seen as an alternative to China’s Belt and Road initiative. Plus, LGT Capital reaches final close of its first impact-focused private equity fund
G7 leaders have committed $600bn (€573bn) in funding to the developing world with the launch of the Partnership for Global Infrastructure and Investment (PGII).
The initiative, which was announced on the first day of the G7 Leaders’ Summit in Germany last Sunday, aims to mobilise both public and private investments with a particular focus on investment into sustainable infrastructure over the next five years. US President Joe Biden promised to raise $200bn (€191bn) of the total through grants, federal financing and private sector investment.
Investments will be targeted at developing climate resilient infrastructure, transformational energy technologies, and clean energy supply chains; developing, expanding, and deploying secure information and communications technology networks and infrastructure; improving gender equality and equity; and developing and upgrading the infrastructure of health systems and contributing to global health security.
The PGII is being widely seen as providing a funding alternative to China’s Belt and Road initiative.
In the G7 leaders’ communiqué released on Tuesday, the PGII was hailed as a way “to narrow the investment gap for sustainable, inclusive, climate resilient, and quality infrastructure in emerging markets and developing countries, based on intensified cooperation, democratic values, and high standards” with the private sector mobilised “for accelerated action to this end”.
LGT Capital Partners closes first PE impact fund at $550m
Swiss alternative investment manager LGT Capital Partners has announced the final close of its first private equity impact fund.
The Crown Impact fund has raised $550m (€525m) from pension funds, insurance companies, endowments and family offices across Europe, Latin America, Asia and Australia, beating its initial fundraising target of $350 (€334) by almost 60%.
The fund will invest along three impact themes; climate action, inclusive growth and healthcare, with a focus on co-investments alongside both conventional and impact managers, complementing the portfolio with impact-focused primary and secondary fund investments
Tycho Sneyers, managing partner at LGT Capital Partners, said: “With Crown Impact, investors benefit from the capabilities and the global network of our investment platform, backed by over 20 years of private equity investing experience, in combination with long-standing leadership in impact and sustainable investing. Crown Impact will be a well-diversified portfolio across sectors, investment styles and geographies, while applying rigorous impact measurement and management practices, which also include external impact verification and transparent impact reporting.”
LGT Capital partners is owned by the Liechtenstein royal family’s LGT Group, which recently announced the launch of a Latin American fund backing purpose driven entrepreneurs across the continent.