Clean Energy Ventures has raised $305 million for its second fund, indicating strong private market interest in decarbonization technologies.
The fund, oversubscribed from an initial $200 million target, attracted limited partners like The Grantham Foundation, Builders Vision, and Carbon Equity.
The firm aims to invest in technologies beyond traditional renewables, focusing on industrial decarbonization for sectors like cement and steel, as well as plastics recycling and grid-improving technologies.
Clean Energy Ventures’ oversubscribed fund signals strong private market backing for decarbonization tech beyond renewables.
Despite the recent underperformance of clean energy stocks in public markets and the decline of SPACs, Clean Energy Ventures remains optimistic.
Daniel Goldman, the firm’s co-founder, believes that the poor performance of publicly traded clean energy stocks and the unwinding of the SPAC trade haven’t diminished investor interest in clean energy investing.
The firm’s approach prioritizes strategic sales over IPOs, targeting technologies that larger companies might acquire.
Private equity is also increasingly involved in energy transition deals, with private equity-backed deals in this sector rising to over $25.9 billion in 2023 from $500 million in 2018.
Clean Energy Ventures collaborates with private equity to help its portfolio companies transition to the next stage of growth.
Goldman noted increased private equity interest in early-stage technologies, especially for follow-on projects once a technology has been demonstrated.
Altogether, the success of Clean Energy Ventures’ fund and the broader private equity interest indicate a strong appetite for decarbonization technologies, offering hope for continued innovation in the clean energy sector.
