MUFG Bank Establishes Climate Tech Growth Fund

Japan’s largest banking group MUFG has launched the Marunouchi Climate Tech Growth Fund L.P. (the Fund) in partnership with Mitsubishi Corporation and Pavilion Private Equity.

The Fund has Marunouchi Innovation Partners as its general partner and will invest primarily in companies dedicated to decarbonisation through the development of climate tech and climate-tech-related startups for growth.

As of its initial closing, the Fund (including the related investment vehicles for overseas Investors) has raised US$400 million of capital commitment from investors.

MUFG and its partners plan to raise new investment through additional rounds of funding and increase the size of the Fund to US$800 million – US$1 billion by its final closing.

Through growth investments in climate-tech-related startups, the Fund aims to commercialise and spread advanced technologies owned by investees while increasing their corporate value and contributing to solving issues related to global climate change.

Through the Fund, MUFG said it will work with its main sponsor, the Mitsubishi Corporation Group, using its industry knowledge and business networks, and other participating investors to capture investment opportunities and support the growth of investee companies.

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