Australia’s Clean Energy Finance Corporation has announced the launch of its first specialist fund manager, Virescent Ventures, with the goal to lift the amount of investment capital available for cleantech start-ups.
Virescent Ventures is targeting a $200 million capital raising, with the government’s green bank expected to bankroll the majority, alongside superannuation funds, strategic investors and large family offices.
Virescent Ventures is co-owned by the CEFC and its founders, formerly senior executives with the Clean Energy Innovation Fund, including executive director Ben Gust and investment leads Kristin Vaughan and Blair Pritchard.
Speaking on occasion of the launch, CEFC CEO Ian Learmonth, who now sits on the Virescent Ventures board, noted “enormous market interest” in the commercialisation of innovative technologies and business models which can accelerate the transition to net zero emissions.
“The success of these companies can benefit our economy and our environment, while enabling Australian innovators to play a leading role in the sustainable economy of the future,” Mr Learmonth said.
“In creating Virescent Ventures, we are continuing to lead the market in seeding a new Australian venture manager with an outstanding track record to facilitate additional private sector investment and growth in the cleantech sector,” Mr Learmonth added.
The CEFC also confirmed it intends to “externalise” management of its $200 million Clean Energy Innovation Fund to Virescent Ventures, which has been appointed to manage the portfolio on behalf of the CEFC given the long association with the portfolio companies.
“The success of the Clean Energy Innovation Fund has generated very strong investor interest in the cleantech sector. Sustainability-focused investors are committed to the success of these innovators, recognising that there is no longer a need to choose between emissions impact and commercial impact,” said Virescent Ventures’ joint managing partner Ben Gust.
“Virescent Ventures gives us a powerful opportunity to tap into this interest, by bringing a specialist fund manager to market backed by a dedicated team with deep cleantech experience.”
The Clean Energy Innovation Fund made lifetime investment commitments of almost $150 million in cleantech companies to 31 December 2021.
Significantly, each dollar of Innovation Fund capital has attracted an additional $3.07 in private sector investment, delivering total lifetime transaction value of almost $580 million to 31 December 2021.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
