ARLINGTON, Va., April 22, 2024 – Gef Capital Partners, a private equity firm based in Washington, D.C., specializing in climate change and pollution mitigation investments, has announced the successful final closing of its GEF US Climate Solutions Fund II (the “Fund”). Demonstrating strong investor confidence, the Fund closed at $325 million in commitments, significantly surpassing its initial target of $250 million. This fund is strategically focused on making controlling investments in lower middle-market companies across the United States and Canada, aiming to accelerate the scaling of their innovative climate change and pollution remediation solutions.
The GEF US Climate Solutions Fund II attracted a diverse and prestigious group of institutional investors who are leaders in climate change-focused investing. Key investors include Blue Earth Capital, HQ Capital, ODDO BHF, INGKA Investments, GEM Investments, Första AP-fonden, Quilvest Capital Partners, Granite Capital Management, and Nordea. This strong backing underscores the growing recognition of the critical role that private equity plays in addressing climate challenges.
Daniel Prawda, Co-Founder and Managing Partner of GEF Capital Partners, expressed his gratitude for the investor support. “We are deeply appreciative of the strong support from a global and highly sophisticated institutional investor base seeking targeted exposure to lower middle-market companies actively tackling climate change within the United States,” he stated. “We are eager to collaborate with these investors to direct crucial capital towards companies that are developing and implementing innovative, cost-effective solutions. These solutions are essential for businesses looking to decarbonize operations, transition to more affordable renewable energy sources, and enhance resource efficiency through circular economy models.”
Nicolas Muller, Managing Director at Blue Earth Capital, highlighted the strategic importance of focusing on lower mid-market companies in the climate change landscape. “While substantial climate change capital is often allocated to infrastructure, venture funds, and mega buyout funds, we recognize a significant need to capitalize lower mid-market companies,” Muller explained. “Small and medium-sized businesses are indispensable to the transition towards a net-zero and circular economy. They require not only capital but also strategic guidance from experienced impact investors. We view GEF Capital Partners as the ideal partner to effectively support and grow these vital businesses.”
In a move that further strengthens GEF Capital Partners‘ operational capabilities, the firm also announced the appointment of two seasoned professionals to its U.S. investment team. Eric Townsend and Radha Badani have joined as Operating Partners, enhancing the firm’s commitment to providing value-added support to its portfolio companies.
Eric Townsend brings extensive experience in operationalizing and scaling climate-centric businesses. His fifteen-year tenure as CEO of Bluesource, a leading environmental attribute project developer and market maker, saw him raise and deploy over $2 billion into greenhouse gas remediation, conservation, and credit generation projects. Notably, Bluesource was a successful portfolio investment of GEF Capital US Climate Solutions Fund I in 2018, and was successfully exited to the TPG-Rise Climate Fund in 2022. Townsend’s operational expertise will be invaluable to GEF Capital Partners and its portfolio companies.
Radha Badani contributes over 20 years of marketing expertise to GEF Capital Partners, with a strong background in strategy, brand management, insights, and sales enablement. Her prior roles include managing flagship brands at The Clorox Company, leading strategy and global insights at New Balance, and developing brand and marketing strategies for numerous growth companies as a Partner and consultant at Chameleon Collective. During her time at Chameleon Collective, Badani provided strategic marketing and advisory support to several of the Fund’s portfolio investments, giving her a deep understanding of GEF Capital Partners‘ investment approach.
Stuart Barkoff, Co-Founder and Managing Partner of GEF Capital Partners, emphasized the firm’s “partner-first” approach. “The addition of Eric and Radha to our team reinforces our commitment to a ‘partner-first’ model, where we actively support innovative business leaders seeking not only capital but also institutional expertise and know-how,” said Barkoff. “Their deep understanding of our investment philosophy, combined with their sales, marketing, and operational expertise, will significantly enhance value creation and impact across our portfolio companies, working in close collaboration with our investment professionals and portfolio company management teams.”
The GEF Capital Partners US Climate Solutions Fund II has already made six platform company investments, building a diverse portfolio focused on key areas within the climate solutions sector, including energy efficiency, alternative energy, and the electrification of transportation. These investments highlight the fund’s commitment to impactful and sustainable businesses:
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InSite: Based in Washington, D.C., InSite offers a technology and knowledge-driven solution for optimizing building performance. By leveraging building data, InSite helps clients across various industries and government sectors to transform insights into actionable solutions that significantly reduce energy consumption and carbon emissions, typically by 10 to 20 percent.
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Lifecycle Renewables: Headquartered in Boston, Mass., Lifecycle Renewables specializes in converting used cooking oil collected from over 6,000 restaurants and foodservice providers in the Northeast into Truburn™, a renewable heating oil. Truburn™ reduces greenhouse gas emissions by 80% compared to conventional heating fuels and is utilized by institutions like universities, hospitals, and utility companies to achieve Net Zero carbon emission targets in heating and transition away from fossil fuels.
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Murf E-Bikes: Located in San Clemente, Calif., Murf E-Bikes designs and manufactures electric bikes engineered for both ruggedness and environmental responsibility. Studies indicate that using electric bikes can result in a 95 percent reduction in CO2 emissions per passenger mile compared to gasoline-powered automobiles, promoting sustainable transportation.
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Polargy: Based in Mountain View, Calif., Polargy designs and manufactures critical building products and solutions for data centers. Their offerings include hot and cold aisle containment systems, modular walls, and structural ceilings, which help data centers reduce server cooling energy consumption by approximately 15 percent, enhancing profitability and significantly lowering carbon emissions.
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Civic Renewables: Headquartered in Bethesda, Md., Civic Renewables is a rapidly growing residential solar energy installation company. Through strategic acquisitions, Civic has expanded its geographic reach and is becoming a key partner for home solar power installation across the United States, driving the adoption of clean energy.
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Next Step Energy Solutions: Based in Littleton, Colo., Next Step Energy Solutions provides comprehensive, turnkey LED lighting system retrofitting and tech-enabled energy efficiency solutions. They primarily serve asset owners and operators in the healthcare, manufacturing, and commercial real estate sectors, helping them reduce energy consumption and costs.
“We are exceptionally proud of the investments made by the Fund, which demonstrate tangible climate outcomes daily across a diverse portfolio of companies,” added Mr. Barkoff. “As private equity investors at GEF Capital Partners, we firmly believe in showcasing that strong environmental outcomes, whether through greenhouse gas emission reductions or other critical forms of pollution mitigation, can generate both robust financial returns and significant environmental benefits.”
FirstPoint Equity (“FirstPoint”) served as the lead placement agent for GEF Capital Partners. Justin Bower, Co-Founder of FirstPoint, commented, “Working with GEF Capital Partners has been an absolute privilege, particularly at a time when sustainable climate investment is more critical than ever. We are proud to have attracted a broad and distinguished group of responsible investors to this important fund.”
Additional placement agent services were provided by Asante Capital, TritonLake, and Impactus Partners. Latham & Watkins LLP provided legal counsel for the formation of the Fund.
About GEF Capital Partners:
GEF Capital Partners is a global private equity firm established in March 2018, emerging from a collaborative spinout from Global Environment Fund, a pioneering firm in global sustainability and environmental investing. With a global presence including offices in the United States, India, and Brazil, GEF Capital Partners invests across clean energy, energy efficiency, waste, water, and resource efficiency sectors. The firm partners with management teams in high-growth markets, applying a value-added approach to cultivate leading companies and advance a more sustainable future. GEF Capital Partners‘ commitment to impact investing is detailed in their 2023 Impact Strategy Report. For more information, please visit www.gefcapital.com.
Video Link – US Climate Solutions Fund II Final Closing
FOR ADDITIONAL INFORMATION CONTACT:
Daniel Prawda
Founder and Managing Partner
240.401.0896
[email protected]
Stuart Barkoff
Founder and Managing Partner
202-743-2898
[email protected]
SOURCE GEF Capital Partners
