Study: From 2000 to 2008, Climate-Change Funding More Than Doubles

(January 15, 2010) — US foundations are awarding a rising number of grants to ameliorate the effects of global warming and climate change. Such funds have invested a total of $1.9 billion in the cause over the past 10 years, according to a new study by The Foundation Center.

According to the report, the number of climate change-related grants, which cover everything from emissions reduction to the role of rain forests, doubled from 2000 to more than $850 million in 2008, spurred by “heightened awareness of an impending climate crisis.” A majority of climate-change grants targeted activities in the US.

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While philanthropic efforts to address climate change have been rising, only a small percentage of the largest funders still account for a majority of the support. The top 25 climate change grant makers in 2008 provided 90% of funding, the report said. The California-based William and Flora Hewlett Foundation led the pack, donating nearly $549 million in 2008. Other top funders included the David and Lucile Packard Foundation, the Rockefeller Foundation, and the Ford Foundation.

The Foundation Center, established in 1956, is supported by nearly 550 foundations. It operates research, education, and training programs to advance knowledge of philanthropy.

(January 15, 2010) — Blackstone Group has raised about $9 billion for its largest fund after nearly two years of talks with investors, an indication of the uphill fundraising battle among even the most profitable companies.

Blackstone aims to finish fundraising for its sixth global buyout fund at the end of June, according to Private Equity News.

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The private equity group’s fund target is estimated to be about $20 billion, as reported in 2008 by London-based firm Prequin. More recently, according to Reuters, Blackstone has indicated raising a number in the low to mid teens.

Blackstone said in November it had $27 billion of unspent capital, known as “dry powder,” from previous funds. Most of those assets are invested in real estate and private equity, reports Reuters.

In recent years, it has been especially difficult to ask investors for funding, as many large investors, such as pensions and endowments, took a big hit on their equity portfolios during the financial crisis. Such investors have been unable to commit new capital and have been forced to halt their investment in private equity, suffering from the denominator effect, in which their allocations to private equity become disproportionately large due to the decline in value of their other investments, Private Equity News reports.

According to data from Prequin, private equity fundraising in 2009 reached its lowest level in five years.

To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742