Climate venture capital manager Virescent Ventures has completed a $100 million first close of its second climate technology investment fund (Fund II), with Westpac serving as a cornerstone investor.
According to Virescent Ventures, the new fund aims to deploy $200 million into climate technologies, seeking to prioritise strategic investments critical for the global transition to net zero.
Opportunities, the firm clarified, will include advancing the clean energy transition, electrifying the economy and improving grid management, decarbonising transport and developing smarter cities, building more sustainable food and agricultural systems, and fostering a circular economy.
Peter Herbert, chief operating officer for business and wealth at Westpac, explained that the bank is wanting to support companies developing innovative climate tech solutions to assist in the transition to net zero.
“This strategic relationship will enable us to partner with leading specialists in fast-moving and highly specialised sectors,” Herbert said.
“Through this investment, we’ll also have the opportunity [to] identify emerging climate leaders and potentially work with them to provide leading solutions for our customers.”
The launch of Fund II follows the success of Virescent Ventures’ first portfolio – managed on behalf of the Clean Energy Finance Corporation (CEFC) – which has seen more than $270 million deployed across 34 Australian climate tech investments.
Ben Gust, managing partner of Virescent Ventures, confirmed that the firm has now secured the support of more than 50 investors.
“We are thrilled to have the backing of Australia’s oldest bank, Westpac, and our long-term partner, the CEFC,” Gust said.
“Their involvement means Fund II combines the CEFC’s deep decarbonisation capability, experience and connectivity, with Westpac’s leading market insights and financial expertise, to help supercharge the growth of emerging climate tech companies.”
Following Fund II’s first close, Virescent Ventures said it is accelerating its assessment of investment opportunities amid intensifying global demand for breakthrough climate solutions.
Kristin Vaughan, managing partner of Virescent Ventures, added that the transition to a sustainable, lower-emissions global economy presents new opportunities for innovation and investment across all areas of the economy.
“Australia is uniquely placed to accelerate this transition and capitalise on these opportunities by being a world leader in climate technology,” Vaughan said.
“This is a generational opportunity for innovation, growth and impact, and we are excited to reach first close of Fund II.”
