NEW YORK--(BUSINESS WIRE)--Today, Fifth Wall, the largest venture capital firm focused on technology for the global real estate industry, announced the $500 million close of its inaugural Climate Fund. The fund aims to invest in software, hardware, renewable energy, energy storage, smart buildings, and carbon sequestration technologies to decarbonize the $10.5 trillion real estate industry.
The fund is the largest private fund formed to decarbonize the real estate industry. It represents the first time that the largest owners and operators of real estate globally, as well as stakeholders in the energy sector, have come together to invest into the climate technology required to dramatically reduce the industry’s carbon footprint. Fifth Wall’s Climate Fund received LP commitments from American Homes 4 Rent, BBVA, British Land, Camden Property Trust, CBRE, Cosan, The Durst Organization, Equity Residential, Hilton, Host Hotels & Resorts, Hudson Pacific Properties, Invitation Homes, Ivanhoé Cambridge, Kimco Realty Corporation, Lineage Ventures, MGM Resorts, NZ Super Fund, Osgoode Properties, and UDR, among others. This brings Fifth Wall’s capital under management to approximately $3.2 billion.
“Although the real estate industry has historically been among the largest contributors to global greenhouse gases, most real estate organizations have underinvested into the critical climate tech necessary to decarbonize,” said Brendan Wallace, Co-Founder and Managing Partner, Fifth Wall. “The strategic LPs in our Climate Fund have instead taken a true leadership role among the industry by making real financial commitments to address real estate’s contributions to climate change.”
The real estate industry emits approximately 40% of total global greenhouse gases when emissions from each phase of a building’s life cycle are taken into account, yet estimates show that the industry has only invested approximately $94.6 million into climate technology R&D over the past 10 years. With their commitments to the Climate Fund, Fifth Wall’s strategic LPs have increased that number more than 5x.
Thus far, the Climate Fund has already completed strategic investments in several promising technology companies, including Assembly OSM, Brimstone, Clarity AI, Electric Hydrogen, ICON, Sealed, SPAN, Turntide Technologies and Wildcat Discovery Technologies. Investors in the fund and throughout Fifth Wall’s ecosystem have access to a powerful network of technologies to help them decarbonize their real estate assets — over 100 of the world’s largest owners and operators of real estate are invested in the Fifth Wall’s funds.
"There is a distinction between implementing existing technologies and investing in the new technologies that will allow the industry to reach true net-zero. Real estate organizations that prioritize R&D investment, like those invested in Fifth Wall’s Climate Fund, have developed a real competitive edge over their peers," said Greg Smithies, Partner and Co-Lead of the Climate Investment team. "We're proud to partner with the industry's leading owners and operators who understand the correlation between an unyielding commitment to climate innovation and an ample balance sheet."
About Fifth Wall
Founded in 2016, Fifth Wall, a Certified B Corporation, is the largest venture capital firm focused on technology for the global real estate industry. With approximately $3.2 billion in commitments and capital under management, Fifth Wall connects many of the world's largest owners and operators of real estate with the entrepreneurs who are redefining the future of the Built World. Fifth Wall is backed by a global mix of more than 100 strategic limited partners (LPs) from more than 15 countries, including BNP Paribas Real Estate, British Land, CBRE, Cushman & Wakefield, Hilton, Host Hotels & Resorts, Kimco Realty Corporation, Lennar, Lowe's Home Improvement, Marriott International, MetLife Investment Management, MGM Resorts, Related Companies, Starwood Capital, Toll Brothers, and others. Fifth Wall believes this consortium represents one of the largest groups of potential partners in the global Built World ecosystem, which can result in transformational investments and collaborations with promising portfolio companies. For more information about Fifth Wall, its LPs, and portfolio, visit www.fifthwall.com.
Important Information
The information included herein with regard to Fifth Wall’s Early-Stage Climate Technology Fund (Climate Fund) is a marketing communication and should not be construed as an offer to sell or solicitation of an offer to buy investment interests in the Climate Fund or any other Fifth Wall managed vehicle. The Climate Fund had its final closing; a subscription for interests in the fund is therefore no longer possible. Investors interested in Fifth Wall and its funds should, when taking into consideration this information about the Climate Fund, consider that an investment in the Climate Fund involves a high degree of risk and is only suitable for investors who are capable of evaluating and bearing the risks it represents. There can be no assurance that the Climate Fund will be able to achieve its investment objectives or that investors will receive a return of their capital. Investors interested in an investment in a Fifth Wall fund should refer to the private placement memorandum of the respective fund before making any final investment decisions. The portfolio companies named herein represent a subset of the current portfolio companies managed by the Climate Fund and does not purport to be a complete list thereof. A complete list of investments currently managed by Fifth Wall is available upon request. The limited partners listed herein represent a subset of limited partners in the Climate Fund and should not be construed as a complete list of investors across all of Fifth Wall’s funds, which may change in composition overtime.
