Cleantech investment bank to raise private equity fund in 2010

Greentech Capital Advisors, which offers financial advisory services to companies engaged in ‘green’ sectors, will also launch a private equity fund in 2010 focusing on clean technology.

Investment professionals at a newly launched investment bank called Greentech Capital Advisors are planning to raise a private equity fund in 2010 focused on the cleantech and renewable energy sector for growth capital investments.

No target amount is planned yet for the private equity fund, according to Andrew de Pass, a senior advisor with Greentech Capital Advisors. De Pass formerly headed Citi’s Sustainable Development Investments group, a private equity unit within Citi alternative investments that focused on growth companies in renewable and alternative energies, waste and water management, carbon and sustainable products.

“From what I saw running a group around these sectors, there’s most definitely an increasing interest in private equity types to invest in these sectors,” de Pass said. “The capital needs are so significant as we transform our infrastructure to more clean and sustainable.”

Investors in private equity funds, like endowments and pensions, have also shown interest in buying into clean technologies, de Pass said.

“There’s an increased desire to allocate to green sectors,” he said.

There are about 170 funds in the market globally raising money for investments in various forms of cleantech and alternative energies. Some of those funds include the Beehive Water & Waste Fund, targeting €400 million; Carlyle Riverstone Renewable Energy Infrastructure Fund II, which will have a focus on renewable energies, targeting $1.2 billion and FourWinds Capital II, which is targeting about $4 billion for investments in clean technology, environmental services, energy, timber and power.

Greentech Advisors was launched this week and will be head up by Jeffrey McDermott, former joint global head of UBS Investment Banking. The bank offers financial advisory services on project finance, private equity and mergers and acquisitions in the sector.