Climate-focused private equity firm Carbon Equity has launched Climate Infrastructure Fund I, which will allow LPs to invest in infrastructure projects like hydrogen and biogas production facilities, solar parks, sustainable transmission systems, EV charging stations and battery storage systems.
During the fund’s first close on 22 August, €10m was raised from existing investors.
The fund is now open to a wider audience, with a second close anticipated by the end of the year. The fund’s minimum investment is €100,000.
Carbon Equity’s Climate Infrastructure Fund I will invest in three to five infrastructure funds, ranging from €500m to €2.5bn in size, providing access to 40 to 50 energy transition projects. The fund, classified as an SFDR Article 9 fund, will primarily invest within the EU.
This new fund differs from Carbon Equity’s Climate Tech Portfolio Funds, which invest through 7 to 10 private equity and venture capital funds, each ranging from €100m to €1bn, in over 150 climate innovations spread across the EU and the US.
Jacqueline van den Ende, Co-Founder and CEO at Carbon Equity, commented: “Our core focus remains investing in climate innovation through private equity and venture capital. However, this new infrastructure fund provides our investors with a chance to further diversify their portfolios while still making a significant impact. The funds we invest in typically have a high entry point, often in the millions, making them accessible primarily to professional or institutional investors. We want to make these opportunities more accessible.”
She added: “The fact that the Climate Infrastructure Fund I invests in projects rolling out proven technologies means that the capital raised is deployed more quickly than in climate innovations.
“Infrastructure projects also generate stable returns earlier, for example through offtake agreements, and have a faster impact. While the risks are still significant, they are lower than those associated with investing in climate innovations, resulting in a lower expected return. Investing in infrastructure may not be as exciting as emerging innovations, but it is equally necessary and complements venture capital and private equity in addressing climate challenges comprehensively.”
Carbon Equity was founded in 2021 and has since raised over €260m from more than 900 investors.
