Fifth Wall Launches Fund Aimed At Decarbonizing CRE

Fifth Wall, a venture capital firm that specializes in proptech investment, is opening its latest fund to financing physical assets that forward the goal of decarbonizing real estate.

The fund will undertake decarbonizing investments in a number of ways, including owning assets directly, acquiring debt positions or partnering with developers, according to Fifth Wall.

Another goal will be to offer support for the investor’s climate-oriented portfolio companies as they deploy new decarbonizing tech, Canary Media reports. These companies include Aurora Solar, Span and Turntide Technologies.

In 2022, the venture capitalist raised more than $1B for new investments. In December, the company closed on its Real Estate Technology Fund III totaling $866M, while earlier in 2022, it closed on its $147M European Real Estate Technology Fund.

Fifth Wall’s Fund III received commitments from numerous investors, including Arbor Realty Trust, CBRE, Cushman & Wakefield, Equity Residential, Granite Properties, Hines, Invitation Homes, Physicians Realty Trust and PulteGroup, among others.

The company has tapped Alok Sindher, previously with D.E. Shaw’s renewables infrastructure practice, to head its new initiative.

According to a blog post by Fifth Wall Friday, the company predicts new emphasis on water-related tech, heat pumps and the next generation of electric cars in 2023.