Blue Earth Capital, a Swiss impact investor that has been active in Asia, has raised $378 million in total commitments for its latest dedicated private equity climate impact strategy.
In a statement, the firm said it secured $308 million for BlueEarth Climate Growth Fund I and an additional $70 million in commitments for its tailored mandate and co-investments.
BlueEarth Climate Growth Fund I will invest in companies working to accelerate the net zero transition, improve resilience to climate change, and promote a circular economy. It targets growth-stage deals between venture and buyout stages across North America and Europe.
“BlueEarth is addressing opportunities graduating from the venture stage but still too early for traditional buyouts – catalysing climate solutions of the future whilst aiming for attractive, market-rate returns,” said Kayode Akinola, head of PE at Blue Earth Capital.
Investments will be targeted across five key themes that the firm recognised as critical in the era of climate change – energy transition, buildings and mobility, climate intelligence, production and consumption, and food and agriculture.
The launch of Blue Earth Capital’s climate impact strategy marks the latest milestone for the firm, which in 2023 surpassed $1 billion in assets under management across its different investment vehicles of credit and funds.
In October, the impact investor announced raising $108.5 million in total for its second dedicated credit impact fund.
The fund, BlueEarth Credit Strategies II, will invest across impact sectors and growth markets with a diversified credit investment strategy, according to the announcement. Its geographic coverage includes Africa, the Americas, and Asia.
Blue Earth Capital is a global specialist impact investor headquartered in Switzerland, with operations in New York, London, and Konstanz. Asia makes up 31% of its $579-million total capital committed as of 2022, per its June 2023 report.
In July last year, it committed $17 million to funds managed by Quadria Capital, the Singapore-headquartered PE firm looking to raise $800 million for its third fund.
Blue Earth Capital also committed $10 million in the growth equity vehicle of Bangkok-based PE firm Lombard Asia. The fund, Lombard Asia V, invests in Thailand, Cambodia, Laos, Myanmar, and Vietnam.
Nicolas Muller, head of funds and co-investments at Blue Earth Capital, earlier told DealStreetAsia that a growing number of development finance institutions (DFIs) and aid agencies in Asia and Africa are starting to offer first-loss capital to drive investments in funds from commercial investors.
First-loss tranche is a concessional capital, typically financed by DFIs, multilateral development banks, or non-profit organisations on less favourable terms to absorb greater risks and attract private backers of funds to benefit from higher rates of returns, sitting on a more senior rank in the capital structure.