The fund will invest in the “missing middle” between venture and buyout in climate-related sectors including energy transition, buildings and mobility, climate intelligence, production and consumption, and food and agriculture.
Blue Earth Capital, a Swiss-based specialist impact investor, has closed its new climate impact fund above target at $378m (€348m).
The Article 9 BlueEarth Climate Growth fund, part of the BlueEarth Climate strategy, aims to invest in the ‘missing middle’, targeting companies between venture and buyout.
It will invest in companies in Europe and North America working to accelerate the net-zero transition, improve society’s resilience to climate change, and promote a circular economy.
The dedicated private equity climate impact strategy comprises $308m from the Climate Growth fund, alongside an additional $70m in commitments from LPs in a tailored mandate and co-investments.
The firm said it has surpassed $1bn in total assets under management across its investment strategies.
Blue Earth Capital is owned by the Blue Earth Foundation, a Swiss-based non-profit whose initiatives and business ventures aim to deliver a more equitable and sustainable future.
Blue Earth’s Capital investments, which aligned with the UN Sustainable Development Goals (SDGs), have impacted the lives of more than 4.8 million people, creating 2,401 jobs and financing over 224,000 clients since its creation in 2015, according to its 2022 impact report.
Kayode Akinola, head of private equity at Blue Earth Capital, said: “The significant investor commitments received for the BlueEarth Climate Strategy demonstrate the essential role of for-profit impact investing in helping to address some of the world’s biggest climate challenges.”
Under the strategy, BlueEarth focuses on equity investment opportunities in companies addressing climate change at the growth stage, between venture and buyout, according to a Blue Earth spokesperson.
Investments will be targeted across five themes which are recognised as critical in the era of climate change: energy transition, buildings and mobility, climate intelligence, production and consumption, alongside food and agriculture.
“Through this strategy, BlueEarth is addressing opportunities graduating from the venture stage but still too early for traditional buyouts – catalysing climate solutions of the future whilst aiming for attractive, market-rate returns,” Akinola said.