The investment will be made in the Klima Energy Fund II from global financial services firm Alantra, which will focus on scaling technologies that are needed for Europe’s energy transition.
The European Investment Fund (EIF) has committed €70m to Klima Energy Fund II (Klima2), the second energy transition growth fund managed by the asset management arm of global financial services firm Alantra.
Following in the footsteps of Klima1, the new fund will focus on scaling technologies that are considered critical to Europe’s energy transition, investing into a portfolio of around twelve fast-growing companies across the continent with ticket sizes ranging between €10m and €30m.
The EIF, which previously invested into the first fund, said this consecutive investment reinforced both institutions’ shared commitment to investing in Europe’s energy transition, supporting high-growth and innovative businesses that strengthen the continent’s industrial fabric, drive competitiveness, and advance the transition toward a more sustainable and resilient future.
Commenting on the investment, Marco Marrone, EIF chief investment officer, said: “Through this investment in Klima2 fund, the EIF is fostering innovation to accelerate the transition towards a clean energy system and low-carbon economy in Europe. We look forward to reinforcing our successful cooperation with Alantra to keep nurturing and supporting the vibrant European ecosystem of greentech companies.”
The EIF is the investment arm of European Investment Bank that specialises in equity allocations in small and medium firms (SMEs) and mid-caps.
Established businesses with proven technologies
The fund will target established businesses with proven technologies and strong growth potential, typically operating through a B2B model in areas such as clean energy generation, energy markets, grid and storage infrastructure, energy efficiency and sustainable transport, the EIF said.
Impact Investor previously reported on the first fund’s investment into Amsterdam-based Dexter Energy, an AI-driven energy tech firm helping energy companies trade on the increasingly volatile European electricity markets by balancing the electricity grid, slashing balancing costs and optimising the use of solar, wind, and battery storage.
The EIF said the Klima team has extensive pan-European experience in energy investments and a network of sector and operational partners across the energy transition ecosystem, which the fund will be able to leverage.
Climate action objectives
As well as responding to the EIB’s strategic roadmap, which outlines the group’s key priorities and new programmes to help close Europe’s investment gap, the EIF’s investment is expected to contribute to TechEU, the EIB Group’s programme to accelerate EU innovation, which aims to mobilise €250bn in investments by 2027 for startups, scale-ups and innovative companies across Europe. In addition, the investment supports the REPowerEU plan to increase energy security in Europe and accelerate the energy transition by reducing the EU’s dependence on fossil fuel imports.
As an Article 9 fund, the managers of the fund will focus on identifying investments that can deliver measurable positive environmental outcomes as well as support the financial growth of innovative businesses contributing to the low-carbon economy.
