With severe wildfires scorching Montana and California and a new climate report from the U.N. pointing to devastating consequences if action no action is taken now, it is no surprise that climate change is at the top of the news cycle and in the front of everyone’s mind. It also appears to be pushing a number of dealmakers and firms to pursue investments.
As might be expected, there has been a recent surge in clean energy deals and impact investment funds. In transportation, ChargePoint Holdings (NYSE: CHPT), an electric vehicle charging network operating in North America and Europe, has purchased ViriCiti, a provider of electrification services for bus and commercial fleets. ChargePoint expects the deal will expand the scale of its existing network. The Investment Management Corp. of Ontario has agreed to acquire grid stability and battery storage company Green Frog Power and will invest up to $500 million (£288 million) over the next several years.
“IMCO is actively seeking new and innovative ways to participate in the global transition towards a low-carbon future while accessing compelling returns for our clients,” says Bert Clark, president and CEO of IMCO, summarizing the dual benefits of the deal. “This acquisition is an excellent example of this strategy in action and is tightly aligned with our ESG and sustainable investing objectives.
Meanwhile, prominent venture capitalist Chris Sacca has, through his firm Lowercarbon Capital, launched four climate technology funds valued at approximately $8 million. The funds will back companies working towards cutting down or eliminating carbon emissions.
On the fundraising side of things, both TPG and Brookfield recently closed impact funds. TPG Rise Climate closed with $5.4 billion in commitments and Brookfield Global Transition Fund closed with $7 billion.
TPG founding partner and executive chairman Jim Coulter offers a compelling take on the urgent importance and potential payoff of these efforts. “It’s a time of both peril and possibility. Climate change is a societal risk but also a generational investment opportunity,” comments Coulter. “Leveraging our deep experience in impact investing, we believe TPG Rise Climate can play a positive role in catalyzing capital to combat climate change. The partnership of leading investment institutions and major corporations funding TPG Rise Climate signals a growing business community commitment to engaging in this existential issue.”
The common theme of these stories is a clear one. With the effects of global warming occurring rapidly, investors are seeking creative solutions to combat the problem and discover the next major growth industry in the process. It also signals the growing consensus on the need for a response to this crisis sooner rather than later.
What climate tech, clean energy or impact investing deals are coming across your desks? E-mail me at [email protected]