Private markets have a key role to play in meeting the level of investment required to achieve net-zero transition goals by 2050, William Barrett, managing partner at Reach Capital, noted in the company’s latest 2024 Private Markets Decarbonization Market Study.
To reach this goal, a total of $200 trillion — or $6.7 trillion in investments — will be needed per year. That’s more than three times the current commitments being supplied to decarbonization strategies by private markets players. Due to the size of this investment gap, the number of investment opportunities available to private markets is expected to multiply.
The report estimates the total annual opportunity for fund managers and institutional investors in a “net zero by 2050” scenario could reach 55 percent of the yearly needs, with 15 percent to 22 percent coming from private markets stakeholders.
The study maps 11 pre-identified sectors crucial to achieving net zero. These sect
