The American Investment Council and PitchBook have released a new report today highlighting how the private equity industry is expanding its clean technology footprint.
Private equity investment in clean technology surged to over $27 billion in 2021, up from roughly $20 billion in 2020. Private equity firms have invested almost $150 billion and sponsored more than 1,000 US clean technology companies over the past decade.
Investments in clean technology include a range of renewable energy solutions – such as solar, wind, and hydroelectric – as well as areas like electric vehicles, waste management, food production and supply chain sustainability, and recycling solutions.
The report reveals that private equity has invested over $100 billion in renewable energy since 2010 and $21.5 billion in renewables in 2021 alone, including more than $6 billion in solar and wind projects.
Over the past decade, private equity firms have sponsored 135 agtech companies at the nexus of food production and technology, totaling nearly $5 billion in capital. A key example is private equity’s investment in soil sensors, which have helped farmers save money on water costs and enhance yields.
Private equity also has a long history of investing in environmental services, including areas like waste management, recycling centres, and oilfield cleanup services. Firms invested in 142 deals and a record $17.2 billion in the environmental services sector in 2021. Over the past decade, private equity firms have sponsored 935 environmental service companies, totalling almost $100 billion in capital.
Over the past decade, US-based impact investors have raised more than 250 funds and a combined $66 billion of available capital.
