One of the most notable trends across private equity (PE) in recent years has been the lack of interest shown in cleantech and renewable energy sources. In fact, many investors and PE funds have been seeking the quickest ways to exit any investments they were holding.
However, a number of PE houses are still putting funds towards this sector, with some even looking to grow specific funds for investment in cleantech and renewables.
Terra Firma Capital Partners are one such group targeting these areas, although they have recently had to resort to offering an “early bird discount” to investors as they look to reach their $2billion ($3billion hard cap) fundraising target, as reported on the Financial News website.
That such a course of action has been deemed necessary is notable, although given recent extreme weather across the United States and in Southern England, it is believed there is an appetite in the wider business world to explore cleantech and renewables investments once more.
The uncertain political situation in Russia and the Ukraine, and how this could potentially influence other energy rich ex-Soviet states, is also contributing to a bigger focus on renewables. Certainly, there has been no let-up in the eagerness of investors to plough money into energy markets, with the constant revenues generated by this industry proving to be as lucrative as ever.
Financial News reports that Terra Firma are currently looking at pushing their marketing activities in the Middle East and Asia, as they target high net worth investors who are happy to deal with funds, who may also be attracted by the early bird discount on offer. It is unclear whether 2014 will be the restart of sustained growth when it comes to investment in cleantech and renewables, but there is definitely a high number of opportunities here that can be exploited by PE firms and venture capitalists.