Alterra launches climate co-investment vehicle: UAE-backed climate fund Alterra plans to launch a climate co-investment vehicle, the USD 1.2 bn Alterra Opportunity Fund, in partnership with Spain’s financial services group BBVA, according to a press release. BBVA has committed USD 250 mn to the fund, which is set to be based in ADGM, and will consolidate existing co-investments under its USD 25 bn Alterra Acceleration Fund under an Alterra-managed structure, pending regulatory approvals.

Where will the money go? The new fund will adopt a varied investment strategy across private credit and private equity, with the sectors in focus including climate-linked infrastructure, energy transition, climate tech, and industrial decarbonization. Location-wise, it will focus on North America, Latin America, Europe, and also consider other high-growth markets.

Background

Alterra deployed sizable capital into various global funds in 2025, including USD 2 bn into Canada’s Brookfield Asset Management’s USD 20 bn energy transition fund, EUR 50 mn to Italian renewables platform Absolute Energy, and USD 100 mn in Indian renewable energy firm Evren.

Besides the Acceleration Fund, Alterra also manages a USD 5 bn Transformation Fund aiming to incentivize investment flows in high-growth climate prospects in underserved markets by providing catalytic capital.

Why this matters

This past year has seen Alterra make massive inroads after initially struggling to deploy capital amid a shortage of viable clean energy projects. It’s still far off — but is inching closer to its target to mobilize USD 250 bn in green investments by 2030.

Its newfound role as fund manager also marks a pivot from a funding and liquidity source to a peer competitor, chasing climate-aligned assets in Europe and the Americas. This shift signals that the UAE is not only funding the energy transition, but competing to manage the capital.

Tags: