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Private Equity Fund of Funds Managers with an Interest in Clean Technology Opportunities – July 2015

by Francesca Braganza

  • 07 Jul 2015
  • PE
  • NR

With global supplies of conventional energy – including oil, gas and coal – diminishing, the importance of investment in clean technology continues to grow. Preqin’s databases track those private equity fund managers and investors that have their eye on opportunities in this space, specifically those that are considering investment in the clean technology, environmental services and renewable energy sectors.

Of the 265 actively investing private equity fund of funds managers tracked by Preqin’s Investor Intelligence online service, 59% have indicated a preference for investing in clean technology as part of their investment strategies. These investors have an aggregate $828bn in private equity assets under management, and are primarily made up of US-based firms, as can be seen in the chart above.

Over the coming year, fund of funds managers interested in clean technology opportunities are looking to deploy over $13bn into the private equity industry. Buyout funds are the most sought-after fund type, with 87% of firms seeking exposure to these, followed by venture capital and growth funds (both sought by 67% of investors), distressed debt (31%) and special situations vehicles (30%).

Geographically, these 156 private equity fund of funds managers are primarily seeking exposure to Europe (67% of investors) and the US (64%), but are also looking to invest in Asia (42%), emerging markets (32%) and other regions around the world.

Four of the 68 funds of funds that have held final closes in the past 12 months are looking to make investments in the clean technology sector. HarbourVest Partners Cleantech Fund II is one of the four, having secured $130mn in investor capital in August 2014. The vehicle looks to invest in clean technology-focused growth and small cap buyout funds on a global scale, and is the second in the series raised by HarbourVest Partners.

There are currently nine private equity funds of funds in market that are seeking exposure to clean technology opportunities. These funds are looking to raise an aggregate $2bn in LP commitments, and will therefore be likely to deploy a significant amount of capital into the clean technology sector.

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