Galvanize Hits $1 Billion for CRE Strategy Fueled by Energy Bets

Galvanize, the asset manager co-founded by billionaire investor Tom Steyer, has hit the $1 billion mark for a commercial real estate strategy that’s designed to make buildings more resilient to soaring energy costs.

The firm, whose CRE model consists of buying and upgrading buildings to improve energy efficiency, announced the final close of its Real Estate Fund I on Thursday, after drawing $370 million of capital, with most of the rest in the form of loans. The fund has so far allocated less than half the $1 billion it has, said Joseph Sumberg, a former Goldman Sachs Group Inc. banker who runs the portfolio.