Fundraising for Clean Tech/Renewable focused funds reached a six year low in 2013, raising only $652 million from five funds. North American focused Sodémex Développement was the largest fund to close in the year, raising $250 million. The GP of the fund, Caisse de dépôt et placement du Québec, is the fund’s sole investor.
In 2008 however, 15 Clean Tech/Renewable funds held final closes securing eight times more than what was raised in 2013. 38 percent of the total capital in 2008 came from China focused GPE Fund, which secured $2 billion in commitments. The fund invests in Chinese companies focused on environmental products and services.
We currently profile 18 LPs that have an appetite for only Clean Tech/Renewable focused funds. Such LPs include Castleway Properties, Nitto Denko Corporation and Wolbern Private Equity AG. Very few LPs have an appetite for the sector due to the sector’s poor returns. Many investments were made on assumptions of government tax breaks and subsidies, rather than on long terms prospects for the asset class. Currently there are 32 Clean Tech/Renewable focused funds in market for capital, with an aggregate target of $6.57 billion.