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Performance of Cleantech Venture Funds

by Gary Broughton

  • 13 May 2011
  • PE

Venture funds are the most prominent fund type within the Cleantech industry, and by examining the returns of those with a sole focus on cleantech we can analyse the performance of this relatively new industry.

Preqin holds performance data for 38 pure cleantech private equity funds, of which 23 are venture vehicles. As most of these funds are still relatively early in their investment life cycle and have yet to return distributions to their investors, it is difficult to examine long-term performance. However, by looking at the median residual portfolio valuations for vintages from 2006 to 2008 along with the median called-up capital, we are able to gain an insight into current performance.

The performance data shows that both vintages 2006 and 2007 have invested over half of their capital, 63.9% and 60% respectively. Vintage 2008 cleantech venture funds have the most capital available for new investments - 72.6%.

For vintages 2006 and 2007 the net asset values to paid-in capital are above 100%, while vintage 2008 funds this figure stands at 82.7%. Funds within this sample still have time to mature and the net asset values are likely to change, but this analysis suggests that current performance is similar to other comparable venture funds.

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