The clean technology private equity momentum continues. In New York, a group of partners has launched NewWorld Capital Group, a private equity firm that will focus on mid-market investments in clean energy infrastructure companies in the United States and selectively in Europe.
The new fund will work closely with Ambienta, a European environmental assets private equity firm in Italy. Both said they plan to collaborate on finding and analyzing investment opportunities -- with NewWorld taking care of the United States and Ambienta addressing Europe.
According to Everett Smith, founding partner, NewWorld Capital, said, "The environmental sector is large, growing rapidly and reflects less competitive intensity than most investment sectors. Our firm will provide expansion capital in the middle market -- what is conventionally known as the period before companies and projects can command large amounts of institutional capital."
There's elbow room in the cleantech space, with could translate to a greater upside relative other sectors, which are mature and routinely attract large amounts of private equity investment.
Bradley Abelow, another founding partner, added, "The transition to a cleaner and less carbon intensive economy will continue to gather momentum whether or not Congress acts this fall. The public demands it, businesses need regulatory certainty, and political leaders are beginning to realize the change has to come. More than 30 states already have renewable portfolio standards mandating clean energy."
The government's involvement in the cleantech industry -- in the form of grants and tax incentives -- enhances the opportunity for investors and funds operating in the space, yet as Abelow notes, it's not essential to the development of the market. Cleantech will happen with or without any movement from Congress.
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