GEF Capital Partners Closes $325 mn Fund to Drive Climate Solutions

By Editor


GEF Capital Partners, a private equity firm dedicated to climate change and pollution mitigation, has closed its GEF US Climate Solutions Fund II. Surpassing its initial target, the fund concluded with an impressive $325 million in commitments, reflecting robust investor interest in climate-focused investments.

The fund, which targets control investments in lower middle-market companies across the United States and Canada, aims to accelerate the deployment of climate change and pollution remediation solutions. Notable investors in the fund include leading institutional players such as Blue Earth Capital, HQ Capital, ODDO BHF, and INGKA Investments, among others.

Daniel Prawda, Co-Founder and Managing Partner of GEF Capital, expressed enthusiasm about collaborating with investors to support companies offering innovative solutions for decarbonization and the adoption of renewable energy sources. He emphasized the fund’s commitment to maximizing resource efficiency and driving impactful change.

In conjunction with the fund’s closing, GEF Capital also announced the appointment of two seasoned leaders to its U.S. investment team. Eric Townsend, a veteran in operationalizing climate-focused enterprises, joins as an Operating Partner, bringing invaluable experience from his tenure as CEO of Bluesource. Radha Badani, an accomplished marketing strategist with a rich background in brand management, has also been appointed to bolster the firm’s value-added approach to investments.

GEF Capital’s portfolio already includes six platform company investments, each contributing to the advancement of energy efficiency, alternative energy, and transportation electrification. Among these companies are InSite, leveraging technology for optimized building performance, Lifecycle Renewables, specializing in renewable heating solutions, and Murf E-Bikes, pioneering electric transportation alternatives.

Other portfolio companies include Polargy, a provider of energy-efficient building solutions for data centers, Civic Renewables, focusing on residential solar energy installation, and Next Step Energy Solutions, offering LED lighting retrofitting and energy efficiency services.

InSite – Based in Washington, D.C., InSite is a technology and knowledge solution for the built environment that operationalizes value from building data to optimize the performance of buildings. The company’s data and engineering experts work across industries and government to transform insights into effective, tangible solutions that reduce energy use and carbon emissions by approximately 10 to 20 percent.

Lifecycle Renewables – Based in Boston, Mass., Lifecycle collects used cooking oil from over 6,000 restaurants and food service providers in the Northeast and converts it into a renewable heating oil called Truburn which reduces greenhouse gas emissions by 80 percent as compared to conventional heating fuels. Truburn is used by universities, hospitals and utility companies to attain Net Zero carbon emission targets in heating, and begin transitioning away from fossil fuel-based energy sources.

Murf E-Bikes – Based in San Clemente, Calif., Murf designs and manufactures electric bikes for rugged and responsible adventuring. According to a study conducted by Bike Radar, the usage of electric bikes results in a 95 percent reduction in CO2 per passenger mile emissions when compared to a gasoline powered automobile.

Polargy – Based in Mountain View, Calif., Polargy designs building products and solutions for data centers including hot and cold aisle containment systems, modular walls and structural ceilings. Polargy helps data centers reduce the amount of energy they use to cool servers by approximately 15 percent, which in turn boosts profitability and reduces carbon emissions.

Civic Renewables – Based in Bethesda, Md., Civic is a residential solar energy installation company. Through acquisitions that have expanded its geographic scope, Civic is quickly becoming a key partner for home solar power installation in the United States. As the cost for solar power declines and electric utility prices continue to rise, Civic seeks to make solar energy more accessible and help support the transition to low-cost clean energy.

Next Step Energy Solutions – Based in Littleton, Colo., Next Step is a provider of full service, turnkey LED lighting system retrofitting and tech-enabled energy efficiency solutions for asset owners and operators, with a primary focus on the healthcare, manufacturing and commercial real estate sectors.

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