Solution Capital in maiden transaction

The nascent New York-based fund of funds has committed $5m to Element Capital's second cleantech fund, which has raised $490m. Solution Capital is raising $200m for its first fund of funds; in December it held an $11m first close with GP commitments.

Cleantech-focused private equity fund of funds Solution Capital Partners has made its first investment into a cleantech growth fund, Element Partners II, committing $5 million. Solution was founded late last year and is targeting $200 million for its debut vehicle.

The firm has been actively fundraising since January, having already held a $10.8 million first close in December with commitments from its general partners.

Pennsylvania-headquartered Element Partners plans to use its second fund to invest in water, green building and industrial processes. It had an initial target of $400 million but has reached $490 million in commitments.

“[Element] has an experienced team that can invest across multiple developmental stages and the fund has not been adversely impacted by lower valuations,” Russell Diamond, Solution Capital’s chief investment officer, said in a statement.

Diamond was formerly a general partner of R&D Capital Partners and founded Solution Capital Partners last year. He also serves on the investment committee of a not-for-profit investment firm that funds clean energy enterprises in the developing world, called E + Co.

Solution’s investment team is comprised of Diamond, Peter Novello, Geoffrey Bradshaw-Mack, Mike Halvorson, Seth Wohlberg, Nicole Belmont and Keith Chan.