Fifth Wall raises $500m climate fund to decarbonize global real estate
Fifth Wall, a venture capital firm focused on technology for the global real estate industry, has held the final close of its inaugural Climate Fund with $500 million in capital commitments. The fund aims to invest in software, hardware, renewable energy, energy storage, smart buildings, and carbon sequestration technologies to decarbonise the $10.5 trillion real estate industry.
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.
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.
To date, 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.