Cleantech Funds in Market

by Jessica Duong

  • 14 Nov 2011
  • PE

Of the 1,788 funds currently in market, 276 make cleantech investments either exclusively or as part of a wider industry focus. Preqin’s Funds in Market product shows that of these 276 funds, almost 27% (74 vehicles) are pure cleantech funds, investing in environmental services, renewable energy and other clean technology opportunities only. Collectively, these funds are seeking just under USD 16.3 billion in capital commitments, and 37 have completed at least one interim close raising a total of USD 2.5 billion.

Preqin’s database reveals that 28% of the cleantech funds in market are focused on European investments, with a further 41% on North America, and the remaining 31% focused on Asia and Rest of World. Venture capital funds dominate the cleantech space and account for 46% of all pure cleantech vehicles currently being raised. A further 23% and 19% of funds make infrastructure and growth investments respectively, with the remaining 12% predominantly made up of fund of funds, balanced and natural resources funds.

The largest cleantech fund in market is the Silver Lake Kraftwerk fund, managed by Silver Lake. The growth fund is targeting USD 1 billion for investments in companies that leverage business model innovation to improve energy efficiency, reduce waste and harmful emissions, harness renewable energy and the more efficient use of natural resources. It has no specific target geography and is willing to invest anywhere in the world.

With respect to funds closed between January and November 2011, a total of 69 vehicles which include cleantech in their industry focus reached a final close, of which 16 make pure cleantech investments. These 16 funds have raised a total of USD 3.4 billion for investing in cleantech opportunities, and eight vehicles are primarily targeting opportunities throughout Europe. Only two of these funds focus their investments in North America, and the remaining six vehicles predominantly target Asia and Rest of World cleantech ventures.

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