Green private equity is a vital funding mechanism that helps entrepreneurs and companies secure sustainable venture capital. Capital for private equity is raised from retail and institutional investors, and can be used to fund new technologies, expand working capital within an owned company, make acquisitions, or to strengthen a balance sheet. The majority of private equity consists of institutional investors and accredited investors who can commit large sums of money for long periods of time. Private equity investments often demand long holding periods to allow for a turnaround of a distressed company or a liquidity event such as an IPO or sale to a public
Sustainability-focused private equity firms possess unique skill sets that enable them to address some of the most serious issues humanity has ever faced.
Here are the 12 leading green private equity firms (in alphabetical order):
Alante Capital Management is a venture capital fund investing in innovative technologies that address climate change and enable a resilient, sustainable future for apparel production and retail.
Alpha Impact Investment Management (AiiM) Partners invests in technology-enabled companies addressing climate change while prioritizing equity and access. They are targeting the untapped potential of the $17 trillion industries at the intersection of ocean, land and air.
Ambienta is a leading asset manager entirely focused on investments driven by environmental sustainability key drivers, Resource Efficiency and Pollution Control.
Better Ventures builds on a decade of experience to back founders leveraging scientific breakthroughs and emerging technologies in service of the UN’s Sustainable Development Goals.
Deetken Impact manages diversified portfolios of investments in high impact businesses – businesses that deliver financial, social and/or environmental returns.
Earthshot Ventures invests in entrepreneurs solving climate’s toughest challenges. Earthshot Ventures invests in both hardware and software companies from Seed through Series B. They bring unique insight blending venture funding with other forms of capital, such as project finance, to help companies scale.
FullCycle Climate Partners invests in growth stage companies with developed climate-critical infrastructure technology. Their focus is on technologies that abate short-lived climate pollutants (SLCPs), which have a disproportionate warming effect in their first twenty years of emission (GWP 20). They accelerate commercialization and asset deployment as a capital and operational partner. Their focus is on sectors of the economy that are the largest contributors of SLCPs.
Galway Sustainable Capital (GSC) is a specialty finance company investing in companies, projects and assets that promote environmental and social resilience through locally-based solutions, ultimately building platforms that use resources more efficiently.
Mirova is a conviction-based, B Corp™* certified management company that offers its clients investment solutions combining the search for financial performance with environmental and social impact. They seek to direct capital towards the needs of investment in a real, sustainable and value-creating economy.
Okavango Capital Partners is a commercial investment firm focused on reducing climate risks and biodiversity loss in Africa’s important ecosystems by working closely with and promoting the well being of local communities. Okavango harness the power of markets to promote sustainable behaviors at scale to prevent key drivers of nature’s degradation.
Prime Impact Fund invests in transformative technology companies with the potential for gigaton-scale climate impact. Drawing on catalytic capital with a long-term lens, the fund is purpose-built to support high-risk, high-reward ventures at the earliest stages.
Volery Capital Partners is a private equity firm focused on growth investments in the financial services industry that benefit people and the planet.
For a more detailed list, see this post that discusses the top private equity firms broken down by the UN’s Sustainable Development Goals.