The private equity world is making up for lost time as firms look to invest in sustainable and net zero real estate and climate technologies. The United Nations established 17 interlinked global goals also known as Sustainable Development Goals that are designed to be step stones to achieve a more sustainable future. There are a handful of new PE and VC funds that have been launched recently that specifically target carbon sequestration. Let’s go through their thinking:
Multi-strategy fund Vivaris Capital recently partnered with United Cities, a firm uniting federal and local government agencies, individuals, and commerce into a single core focus: to build and support sustainable cities and communities. The partnership will look to raise capital through the Vivaris’ VICAN Fund.
“There are a handful of new PE and VC funds that have been launched recently that specifically target carbon sequestration,” Vivaris CEO J. Christoper Mizer tells Mergers & Acquisitions. “Some of the larger, more socially responsible LP’s are currently using carbon mitigation measures to allocate capital. This will drive PE firms to provide measures of their activities over time,”
The two firms plan to work in conjunction to develop sustainable real estate projects and deploy climate technologies including carbon credit platforms, applications of AI, electrification products, hydrogen and clean energy storage technology and reforestation that result in “net negative” impact.
Mizer adds: “We anticipate that the initial investors into the VICAN Fund will be family offices, middle-market institutions, and accredited individuals. This is where we can provide the most value by bringing them access to institutional quality, alternative asset opportunities in the climate tech, life sciences, and real estate spaces.”
– Cole Lipsky