The United Arab Emirates’ climate investment platform ALTERRA and Spanish lender BBVA said they plan to establish a $1.2 billion co-investment vehicle to finance climate-aligned projects and companies worldwide. The proposed fund, named the ALTERRA Opportunity Fund, is designed to deploy capital across infrastructure, private equity, and private credit, according to a joint statement from the two organisations.
As part of the planned structure, BBVA said it intends to commit $250 million as a strategic limited partner. The firms framed the initiative as a way to expand co-investment capacity and attract additional institutional participation, positioning the vehicle as a channel for scaling climate-focused deployments beyond a single sponsor’s balance sheet.
Investment Themes and Geographic Priorities
The partners said the new vehicle will target climate-related opportunities spanning energy transition, industrial decarbonisation, climate technology, and sustainable living. While the statement did not provide a detailed pipeline or project list, it indicated a broad mandate intended to cover both established and emerging segments of the climate economy.
In terms of regional focus, the firms said the fund will look primarily at North America, Latin America, and Europe, while also keeping scope for investment in “other growth markets.” The announcement did not specify allocation targets by region, nor did it set out sector weightings, but the inclusion of multiple asset classes suggests a structure designed to accommodate different risk profiles—from long-dated infrastructure finance to growth-stage climate technology and credit strategies.
ALTERRA’s Scale Ambitions and Existing Partnerships
ALTERRA was established in 2023 with an initial commitment of $30 billion from the UAE, and it has set an objective of mobilising $250 billion in climate capital globally by 2030. The initiative was unveiled in connection with COP28, as described in ALTERRA’s own announcement about the vehicle’s launch and mobilisation goal.
Reuters has reported that, to date, ALTERRA’s activity has largely involved commitments through climate and transition strategies managed by major global investment firms, including BlackRock, Brookfield, and TPG. The new BBVA-backed vehicle fits that broader positioning: rather than operating only as a standalone investor, ALTERRA has emphasised structures that bring in third-party institutions and co-investors to expand total deployable capital.
The new fund’s co-investment design also aligns with the wider trend of Gulf-based financial centres seeking to host and manage international investment activity. Abu Dhabi Global Market (ADGM), where the fund is expected to be based, has reported rapid growth in active firms and asset-management activity in recent periods, reflecting heightened global interest in establishing regional presences.
Domicile, Governance, and Consolidation Plan
The firms said that, once launched and approved, the ALTERRA Opportunity Fund will be domiciled in ADGM, Abu Dhabi’s financial centre. ADGM describes itself as an international financial centre operating across Al Maryah Island and Al Reem Island, with a legal and regulatory framework that applies English common law.
The partners also said the vehicle is intended to consolidate existing co-investments from the ALTERRA Acceleration Fund into a dedicated structure that would be managed by the Emirati company. The statement did not outline a timetable for regulatory approvals or final close, but it characterised the consolidation as a way to centralise co-investment activity under a single platform and formalise the approach to partnering with institutional investors.
