Montreal-based Power Sustainable, the climate-oriented investment arm of Power Corporation of Canada, has secured $330m for a new private equity strategy targeting mid-market companies driving decarbonisation across North America, according to a report by Bloomberg.
The strategy will focus on profitable mid-sized businesses where operational improvements – including enhanced energy efficiency – can deliver both environmental and financial upside. The fund aims to take control or significant minority positions, with flexibility to deploy leverage alongside equity investments, according to CEO Bruce Heyman.
Anchor commitments came from Power Corp, Canada Life, Export Development Canada (EDC), and Fonds de Solidarité FTQ. The new vehicle forms part of Power Sustainable’s broader push to position Canadian private capital at the forefront of global energy transition efforts.
Power Sustainable manages CAD4.2bn in AUM across four strategies focused on renewable energy, sustainable infrastructure, agri-food, and now decarbonisation-focused private equity. The firm underwent a strategic realignment in 2023, winding down its China public equities platform to concentrate on private markets.
Despite recent losses reported through Power Corp – largely driven by early-stage investment and restructuring costs – the firm sees long-term opportunity in climate-aligned private equity.
Heyman, formerly a Managing Director at Goldman Sachs and US ambassador to Canada, leads the firm’s strategy to align institutional capital with global sustainability trends.
