QIC Private Equity's Lottie Bryon, Nick Guest and Eden Peterson are deploying capital into climate-related solutions through funds and co-investments across North America, Europe and Australia.Queensland Investment Corporation (QIC) is partnering with Australia’s largest and most active dedicated climate tech VC to empower local startups to advance the global transition to net zero.
The investment in Virescent Ventures’ Fund II follows a $100 million first close last month, backed by cornerstone investors Westpac and the Clean Energy Finance Corporation (CEFC).
QIC Private Equity Investment Director Lottie Bryon said partnering with Virescent represents an opportunity for QIC to work with an Australian-based climate manager with a reputable heritage and deep networks.
“As a first point of call for many high-quality climate startups, the Virescent team are recognised as standout active investors with a strong commitment to accelerating growth for meaningful impact,” Ms Byron said.
“The expertise and touch points into the clean energy sector afforded through their connection to the CEFC provide a unique origination model that delivers attractive climate tech opportunities.
“Acknowledging the significant investment required to reach net zero, providing early-stage companies with growth capital to address emerging opportunities in this enduring secular trend sits at the core of our climate mandate strategy.”
Confirmation of QIC’s investment comes alongside new commitments from a number of high-net-worth investors, taking first close of Virescent’s new fund to approximately $125 million.
Managing Partner of Virescent Ventures Kristin Vaughan said QIC brings a global presence, cross sector expertise and deep financial market insights to Fund II.
“We’re thrilled to have the backing of QIC as we complete our first, soon to be announced, investment from our second climate technology fund,” Ms Vaughan said.
“The calibre of investors backing Fund II shows the confidence major public and private investors have in Virescent and our track record, and the opportunities in Australian climate tech.”
QIC Private Equity is deploying capital into climate-related solutions through funds and co-investments across North America, Europe and Australia.
Leveraging existing capabilities in sourcing and selecting emerging managers within venture, growth and buyout, Ms Bryon said QIC has been actively sourcing sustainability-related investments globally with over 18 months of in-depth market mapping.
“This mandate has been designed with the aim of aligning to the most frequently adopted institutional standards, and we have created the tools and processes to screen and assess each investment opportunity,” she said.
“Importantly, we want to support the ongoing market institutionalisation of the climate investment landscape through capital partnering across funds and co-investments with managers demonstrating strength in delivering impact.
“Our focus is on intentionality, integration, measurement, governance and ensuring strong alignment to QIC’s impact thesis across emissions mitigation, climate adaptation, resource management and enabling technologies.”
Under the mandate, QIC has also invested in European climate investor Blume Equity, which targets emissions reduction via sustainable food systems, circularity and nature preservation.
Ms Bryon said the deal provides unique access to support the scale-up of European climate tech companies at the forefront of developing and implementing energy transition and climate solutions more broadly.
“This commitment stems from a desire on behalf of our clients to drive change, whilst also benefitting from what we believe to be a generational investment theme. We believe Blume is particularly well equipped to address this opportunity, and we are excited to be partnering with them.”
QIC has engaged global impact investing firm Tideline to provide specialised input on the Climate Mandate strategy, process and tools for selecting investments and measuring and managing with impact.
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A global platform with a demonstrated track record investing since 2005, we provide flexible, client-driven Private Equity solutions in lower mid-market buyout, growth and VC. Our international team of 26 is strategically located in our core investment markets, where we focus on growth, innovation and transformation to achieve alpha. We manage A$9 billion in private equity assets globally (as at 31 Mar 2024).
Virescent Ventures is Australia’s largest and most active dedicated climate technology investor. Born out of the Clean Energy Innovation Fund under the Clean Energy Finance Corporation (CEFC), since 2016 Virescent Ventures has deployed over $270 million in 34 investments driving the innovations required for the global transition to net zero. Our portfolio spans clean energy, sustainable agriculture, circular economy, and smart cities. We invest from pre-seed to growth stages, with a focus on maximising emissions reduction and commercial outcomes. For more information visit www.virescent.vc
Blume Equity, the European climate-tech growth investor, is dedicated to delivering profit with purpose by supporting fast-growth European businesses addressing the climate crisis to scale. Blume works in close partnership with management teams on the growth journey, drawing upon the team’s long scale-up and sustainability experience. Blume has hubs in Amsterdam and London, plus operating partners across other key European geographies. For more information, see: www.blumeequity.com