Climate Investing: The Role of Private Equity

Climate change poses one of the most salient emerging risks - and opportunities - to financial markets. This course discusses the fast-moving frontiers of climate finance. It will particularly focus on the role that private markets play in accelerating the growth of the companies facilitating the transition to a carbon-neutral economy. The course will consist of a mix of lectures introducing frameworks and relevant background information, case studies, and guest speakers. There will be two hands-on homework exercises where students evaluate real-world investment opportunities - one at the venture-capital stage and one at the private-equity stage. After taking this course, students will (a) be familiar with the unique challenges of financing climate tech at scale; (b) understand the key climate disclosure requirements, frameworks for financed emissions, and methods for "impact measurement"; and (c) develop some practical experience with portfolio allocation for sustainability-focused investment funds. No prior finance background required.