Energy Impact Partners gets ADIA, Microsoft backing for first European fund

Mainova AG

13/09/2022 07:00

* Microsoft makes first climate-tech fund investment
    * Abu Dhabi, Singapore sovereign wealth funds also invest
    * Seeks companies driving energy transition

    By Simon Jessop
    LONDON, Sept 13 (Reuters) - Climate-focused venture firm
Energy Impact Partners (EIP) has launched its first European
fund, raising 390 million euros ($392.03 million) from investors
including the Abu Dhabi Investment Authority, its co-managing
partner told Reuters.
    EIP, which manages around $2.5 billion in assets, said the
fund would seek out companies in the region helping drive the
transition to a low-carbon economy. 
    In addition to traditional funding for the start-ups, EIP
also offers them a chance to meet and work with a coalition of
major industrial companies it has partnered with -- some with an
interest in the technologies introduced by the new players.
    That coalition of 50-plus companies span some of the
heaviest emitting sectors such as energy, transport and
agriculture, many of which also backed the new fund, including
Ferrovial  FER.MC , Fortum  FORTUM.HE , and Galp  GALP.LS .
    To-date, EIP said the model of connecting strategic
investors with start-ups, had resulted in portfolio companies
signing over 350 contracts for a combined value of more than $1
billion.
    "These incumbents are the ones that own the critical
infrastructure, and if we want those to decarbonise, we have to
work with them," Co-Managing Partner Nazo Moosa said.
    Other companies investing in the European fund include
Électricité de France  EDF.PA , Shell  SHEL.L , EWE AG
 LANDWE.UL , Mainova  MNVG.F , AGL Energy Ltd  AGL.AX ,
TrønderEnergi AS  TROEN.UL  and Microsoft  MSFT.O , through its
Climate Innovation Fund. 
    Other financial investors include Singaporean sovereign
wealth fund GIC, Norwegian government-backed Nysnø Climate
Investments and Dutch pension fund ABP, through its asset
manager APG.
    Moosa said the fund will invest between $10 million and $40
million in Series A, B and C funding rounds, and expects to
invest the money over the next couple of years in up to 18
firms. 
    To-date, EIP has invested in a number of European firms
including renewable energy supplier Zolar, portable battery
provide Instagrid, and environmental, social and governance data
provider ESG Book.
    Moosa said Europe was leading the world in various aspects
of the low-carbon transition, making it a fertile hunting ground
for new companies.
    Europe aspires to become the first carbon-neutral continent,
and regulations are expected to support the goal, creating a
likely boost for portfolio companies.
    Brandon Middaugh, director of the Microsoft Climate
Innovation Fund, said in a statement that it picked EIP as its
first fund investment in climate tech as part of the company's
efforts to become carbon negative by 2030. 
    ($1 = 0.9948 euros)

 (Reporting by Simon Jessop, editing by Deepa Babington)
 ((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052;
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