Key Takeaways
- • Clean Growth Fund II has secured £81.5m at its second close, representing 54% progress toward its £150m target for a climate technology venture capital strategy.
- • Border to Coast, a £120bn UK local government pension pool, has made a sizeable commitment to the fund, demonstrating institutional pension backing for climate-focused venture investment.
- • The funding milestone underscores growing institutional appetite for climate technology solutions within the alternative investment landscape, particularly among public pension vehicles.
- • Clean Growth Fund is advancing a dedicated second fund focused on climate technology ventures, building on the foundation of its initial fund.
Summary
Clean Growth Fund has announced an £81.5m second close for its second climate technology venture capital fund, marking substantial progress toward its £150m fundraising target. The milestone represents approximately 54% of the fund's stated objective and reflects accelerating institutional commitment to climate-focused investment strategies within the venture capital ecosystem.
A significant portion of the capital has been secured through Border to Coast, the £120bn UK local government pension pool, which has committed a material amount to the fund. This pension vehicle's participation signals confidence among UK public pension trustees in the investment thesis and management team behind the climate technology strategy, while also reflecting a broader institutional shift toward environmental sustainability themes in venture allocations.
The second close milestone demonstrates momentum in Clean Growth Fund's fundraising efforts and positions the fund favorably for reaching its final target. The involvement of a major UK pension pool underscores how institutional capital—particularly from government-backed pension vehicles—continues to flow into climate-related alternative investments, a trend that reflects both ESG mandates and return-focused consideration of climate technology as an emerging asset class.
A significant portion of the capital has been secured through Border to Coast, the £120bn UK local government pension pool, which has committed a material amount to the fund. This pension vehicle's participation signals confidence among UK public pension trustees in the investment thesis and management team behind the climate technology strategy, while also reflecting a broader institutional shift toward environmental sustainability themes in venture allocations.
The second close milestone demonstrates momentum in Clean Growth Fund's fundraising efforts and positions the fund favorably for reaching its final target. The involvement of a major UK pension pool underscores how institutional capital—particularly from government-backed pension vehicles—continues to flow into climate-related alternative investments, a trend that reflects both ESG mandates and return-focused consideration of climate technology as an emerging asset class.
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