Investor appetite for innovative climate tech trumped geopolitical uncertainties, its CEO and co-founder Jacqueline van den Ende tells Impact Investor.
Carbon Equity, a Dutch investment platform for the financing of climate solutions, has announced a final close of its third climate tech fund after it raised €107m from 460 private and institutional investors.
The Climate Tech Portfolio Fund III, which was launched a year ago with a fundraising target of between €100m and €150m, will invest in at least 150 climate innovations, ranging from green steel to geothermal energy and innovative batteries, through seven to 10 selected private equity and venture capital funds in Europe and the US.
Investor interest in the fund demonstrated that the momentum for climate tech investments has persisted, despite growing geopolitical tension since Donald Trump became US president, according to Jacqueline van den Ende, CEO and co-founder of Carbon Equity.
“Trump has given the energy transition in Europe a boost,” Van den Ende told Impact Investor. “That’s because the energy transition has now become part of a national security agenda in Europe, and suddenly there is a lot of urgency to become less dependent on energy from the US.”
Addressing the climate challenge
Carbon Equity was founded five years ago to try to unlock large-scale capital from private investors to help solve the world’s biggest challenges, including climate change.
Since its foundation, the Amsterdam-based platform has raised €300m from more than 1,250 investors through nine investment funds that are active in climate technology and infrastructure. Its investors range from high-net-worth individuals to entrepreneurs, directors, family offices and foundations.
To date, Carbon Equity has indirectly invested in more than 200 portfolio companies across Europe and the US through 25 private equity and venture capital funds, which it said makes it one of the world’s most active investors in climate innovation and infrastructure.
Investor appetite
Although some investors have become more cautious when it comes to investments in climate tech, others have continued to commit, according to Van den Ende.
“On the one hand, Trump’s policies have created huge uncertainty on the international investments markets as well as on the perspective of climate solutions. That’s not been helpful. Family offices especially have been sitting on their hands somewhat when it comes to investing with us because they want to see what will happen in the market. But private investors on the other hand have continued to invest as normal, with some feeling like they have to take action to help the climate,” Van den Ende said.
As previously reported by Impact Investor, Carbon Equity closed its second climate tech fund a year ago after raising €100m, exceeding its initial target by €25m.
Carbon Equity plans to launch a fourth climate tech fund soon, with a target of €125m, Van den Ende said. She went on to say Carbon Equity’s infrastructure fund, which gives investors exposure to infrastructure projects such as battery storage, EV charging, renewable biogas and solar PV, has raised €20m so far.
