LPs back record cleantech fund

In a sign of limited partners’ interest in renewable and green energies, London-based zouk Capital has closed Europe’s largest fund for investments in clean technology.

Cleantech-focused private equity firm zouk Capital has pushed past its original target of €200 million with €230 million in commitments for its latest fund. 

It represents Europe’s largest-ever cleantech-focused vehicle, the firm said in a statement.

Last year, Europe’s cleantech market was worth over €70 billion in investments, according to zouk chief executive Samer Salty – a figure he expects to rise in 2011 and further still in subsequent years.

Investments in clean technology have benefited from countries across Europe hinting at or implementing programs to reduce planet warming greenhouse gases over the coming years. More recently the UK government said it plans to open the world's first green investment bank for business next April.

These markets continue to show strong growth, driven by increasing resource demand, security of supply, climate change considerations and political support

Samer Salty



Fittingly zouk has already begun investing from “Cleantech Europe II” with the creation of energy efficiency solutions company Anesco in April. The fund targets deals in renewable energy, energy efficiency, water and waste technologies.

“These markets continue to show strong growth, driven by increasing resource demand, security of supply, climate change considerations and political support,” said Salty.

Roughly two years in market, the fund captured commitments from “a globally diverse institutional investor base” including sovereign wealth funds, fund-of-funds, international corporations and pensions.

For more on cleantech as an up and coming sector see our inaugural Energy Handbook in the July/August edition of Private Equity International.