Carbon Equity launches fund to allow retail investors to back climate tech companies starting from €20K

Amsterdam-based Carbon Equity, an investment platform for financing climate solutions, has opened access for retail investors to invest in non-listed climate technology companies. 

Through the new Access to Climate Tech Fund II, individuals can participate starting from €20,000. 

The fund channels capital into climate-focused projects via private equity, infrastructure, and venture capital funds. This type of investment was previously limited to large-scale investors.

First fund for retail investors

Carbon Equity has launched the Access to Climate Tech Fund II, its 11th investment fund and the first to target retail investors. Previously, the company’s funds required a minimum investment of €100,000.

The new fund, a fund-of-fund, will invest in 5 to 10 selected funds supporting at least 100 climate projects, including areas such as aviation fuel, geothermal energy, and battery storage.

The fund invests in non-listed climate technology companies and infrastructure projects, primarily in Europe, through private equity, private infrastructure, and venture capital funds. Its diversified structure spreads risks across multiple investments.

Since its founding in 2021, Carbon Equity has invested in 25 funds and made direct co-investments in several companies. Recently, it raised €105M for the Climate Tech Portfolio Fund III, bringing its total capital raised to over €300M across nine funds.

Jacqueline van den Ende, CEO and co-founder of Carbon Equity, says, “The launch of this new fund marks the fulfilment of a long-held wish. When we started over three years ago, we set ourselves the goal of unlocking as much capital as possible from investors to fund the most impactful climate solutions.”

“Over the past years, we have already been able to welcome more than 1,250 high net-worth investors, and with this lower entry amount of €20,000, even more people can join us to make a difference together.”

She further adds, “Looking at the energy transition, we are at a tipping point. Last year, 90 per cent of all new electricity production worldwide came from renewable sources, i.e. generated via solar, wind or water. China is now selling electric cars for under €10,000. The transition is going rock-solid.”

“Moreover, energy transition is now crucial for Europe to reduce its dependence on the United States. I’m convinced money is all-important here. With even more capital from even more people, we can make even more impact and solve problems together.”

First Dutch ELTIF fund

The Access to Climate Tech Fund II is the first European Long Term Investment Fund (ELTIF) launched by a Dutch company, Carbon Equity. ELTIFs were created by the EU to offer smaller investors access to private markets and unlock dormant savings for economic growth. The Dutch Central Bank reported €600B in savings in the Netherlands by the end of 2024.

Through this new fund, Carbon Equity aims to make investments in non-listed companies available to more private investors.

Co-founder Van den Ende says, “We are the first in the Netherlands to democratise the Private Equity investment category through this ELTIF fund. This allows more people to invest in the fast-growing segment of private climate technology companies and climate infrastructure in a diversified way, and at the same time, helps solve climate problems.”

“Investing in private climate companies offers, especially in times of turmoil, a compelling combination of impact, diversification and risk-adjusted returns, and can serve as a valuable complement to a portfolio of stocks and bonds. That said, this illiquid investment does carry risks, of course. It is important that investors are aware of those risks and of the long duration of the investment fund.”

Brief about Carbon Equity

Carbon Equity is a climate investment platform aimed at mobilising capital from private investors to address global challenges, starting with climate change. 

The platform provides access to climate-related VC and growth funds, allowing investors to build portfolios in climate tech companies, including those focused on renewable paraffin, mega batteries, and geothermal energy.

With commitments to 25 funds and multiple co-investments, Carbon Equity is an active investor in the climate technology sector. Carbon Equity cautions that investing involves risks.