Carbon Equity raises €60m in four months for its new climate tech fund

Investment platform sees increasing interest in impact investing via private equity

  • At the first close on June 26, Carbon Equity raised €60 million from around 160 investors for its Climate Tech Portfolio Fund III, which was launched in March this year.
  • Carbon Equity aims to raise at least €125 million with this new fund, which will be invested through private equity and venture capital funds in the EU and the US, and in at least 150 climate tech companies.
  • Carbon Equity has raised over €250 million from more than 900 investors. To date, the company has invested in over 120 companies through 18 funds, making it one of the most active climate fund investors.

Amsterdam, June 27, 2024 – Carbon Equity, the leading climate fund investing platform, raised €60 million in the first close of its Climate Tech Portfolio Fund III, which launched in March this year. The capital comes from over 160 private and (semi-) professional investors, such as family offices and foundations. The fund will remain open throughout 2024 unless the maximum of €200 million is reached earlier.

Carbon Equity was founded in 2021 with the ambition to unlock private capital at scale to finance the world’s most impactful climate solutions. With the Climate Tech Portfolio Fund III, investors can invest in at least 150 leading climate innovations, ranging from green hydrogen and CO2-free cement to iron-air batteries and new-generation proteins, through 7 to 10 selected private equity and venture capital funds.

Jacqueline van den Ende, Co-founder and CEO of Carbon Equity, shared: “We are incredibly happy and proud to have again gained the trust of so many investors. They recognize how crucial climate tech is for our net zero future. Thanks to private equity, an asset class that was previously only accessible to large investors, they can now make a real impact with an attractive expected return. Of course, investing in this category also involves risks."

Strong growth

With the €60 million now raised for the Climate Tech Portfolio Fund III, Carbon Equity currently manages a total of €250 million, an 80% increase compared to a year ago. The number of investors on the platform increased by 75% over the past year to more than 900. Of the investors participating in Climate Tech Portfolio Fund III so far, 25% had previously invested in a Carbon Equity fund.

To date, the company has invested in over 120 portfolio companies through 18 funds, making Carbon Equity one of the most active climate fund investors. Despite being partly early-stage innovation, these underlying companies already generated more than €1.7 billion in revenue in 2023.

“There is a clear trend that investors are increasingly looking for alternatives that offer a combination of impact, diversification and risk-weighted return,” says Jacqueline van den Ende. “More and more often, the traditional 60/40 stock and bond portfolio allocation is being abandoned in favor of a mix that includes private equity. Climate tech is a rapidly growing segment in this mix.”

Jacqueline van den Ende also notes that this asset class is not suitable for everyone and that investors should be aware of the potential risks, implications and long investment horizon required for this type of investment.

Carbon Equity aims to lower the minimum investment from €100,000 to make its funds more accessible and attract more private capital for climate solutions. The waitlist for lower investments is now open and is expected to be served on a ‘first come, first served’ basis with limited availability over the summer. Professional investors who meet certain criteria can already participate starting from €50,000 (see info).

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About Carbon Equity

Carbon Equity is the leading climate fund investment platform. Its goal is to unlock billions of capital from private investors to help solve the world's biggest challenges, starting with climate change. By providing private investors with access to leading venture capital and growth funds in the climate sector, Carbon Equity's investors can invest in a diversified portfolio of groundbreaking climate tech companies, ranging from CO2-free cement to plant-based meat and green hydrogen. To date, over 900 investors have invested more than €250 million through the Carbon Equity platform.

Carbon Equity has a license under Article 2:65 of the Financial Supervision Act. Carbon Equity and the alternative investment institutions of which it is the manager are supervised by the Authority for the Financial Markets (AFM). Carbon Equity B.V. is listed in the AFM's register of investment institutionswith registration number 15005329.

Media contact:

Carbon Equity
Jacqueline van den Ende, CEO
jacqueline@carbonequity.com

Moerkerk Mediarelaties
Wim Moerkerk
wim@moerkerkmediarelaties.nl
+31 6 1380 7657

Disclaimer

This is a marketing message. This information does not provide a sufficient basis for an investment decision. Please read the information memorandum and the Key Information Document (KID) of the fund before making an investment decision. You should also consider all relevant features and objectives of a Carbon Equity fund in your decision, not just sustainability aspects. Climate Tech Portfolio Fund III qualifies as Article 8 SFDR. Information on sustainability can be found in the website statement of Climate Tech Portfolio Fund III and in the information memorandum. These documents are available at www.carbonequity.com.

There are risks associated with investing. You may lose part or all of your investment. The risk of Climate Tech Portfolio Fund III is high, specifically 6 on a scale of 7.

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