Afterglow Climate Justice Fund

Date: 2023

Asset Class: Private Debt

Description:  Climate Justice Fund is a target $50m Fund that will provide debt financing for 10 to 12 climate projects and companies that primarily benefit historically marginalized communities. The Fund's investment pipeline includes both project- and corporate-level debt, and the portfolio will be comprised of approximately 70% renewable energy and 30% "other climate solutions," such as building retrofits, electric vehicle access, and air quality improvement. The Fund will invest an average of $5m in each project with terms of three to seven years and interest rates between 5% and 10%.

Why We Invest: Climate solutions are not reaching underserved communities or low-to-moderate-income (LMI) households in the United States, despite their minimal responsibility for the climate crisis and heightened vulnerability to its impacts. As the nation transitions to a low-carbon and more sustainable economy, these communities face further marginalization due to systemic inequalities, including historic underinvestment and discriminatory policies. Despite the increasing flow of institutional capital to finance the clean energy transition, these communities struggle to attract adequate funding for climate solution projects that benefit them, leading to limited access to leadership roles and decision-making power. Consequently, they are unable to fully reap the environmental and economic benefits of climate solutions like community solar, electric vehicles, and environmentally responsible infrastructure. We believe the impact of this investment will offset its lower financial return.