Hudson Clean Energy targets $1.5bn for Fund II

The firm is targeting $500m more than its fund focused on clean technology and energy investments in North America and Western Europe.

Hudson Clean Energy Partners is targeting $1.5 billion for its second fund focused on clean technology and energy investments, according to a source familiar with the matter.

The firm’s debut fund collected $1.024 billion in October 2009, closing above its $1 billion target. Like Fund I, Hudson Clean Energy Partners II will make investments in renewable power, alternative fuels and energy efficiency businesses in North America and Western Europe.

The firm declined to comment on the fundraise.

Hudson attracted some big-name investors for Fund I, including the New York State Common Retirement Fund, which committed $100 million. New York State’s investment was part of its $500 million “Green Strategic Investment Program”, which targets investments in renewable energy and clean technology.

Other limited partners in Hudson’s debut fund include Danish pension giant ATP, which made a $400 million investment, and Credit Suisse, which committed $300 million.  CP Eaton acted as placement agent for Fund I.

Hudson Clean Energy is also understood to be in market with its first RMD-denominated fund, the target for which is unclear. The firm entered a partnership with the Yangzhou Municipal Government Financial Affairs Office in July to officially establish an RMB fund for China’s clean energy market, saying it would launch the fund “in the coming months”, in a statement issued at the time. Hudson hired Zhongmin Shen, former chief executive officer of Huaneng Invesco WLR Investment Consulting, to lead its private equity effort in China.

Hudson was founded in 2007 by former Goldman Sachs US alternative energy chief Neil Auerbach. John Cavalier, former vice chairman of Credit Suisse’s investment banking department, is co-managing partner of the firm.