Activate joins fundraising bonanza for climate funds

The San Francisco-based firm has closed its second fund, beating its fundraising target by $200m.

Activate Capital Partners, a climate tech venture and growth equity firm, has closed its second fund on $500 million, $200 million above its target and three times larger than its first fund, reports affiliate title Venture Capital Journal.

Activate Capital Fund II was backed by 30 institutional investors, with commitments from “limited partners from across the US, Europe and South America, including foundations, sovereign wealth funds, pension funds, family offices, strategic investors and funds of funds”, according to a statement.

The San Francisco-based firm closed on $157.3 million for its first fund in 2018, with commitments from Alaska Permanent Fund, Environment Agency Pension Fund and Texas Municipal Retirement System, according to PitchBook.

Activate set a target of $300 million when it started fundraising for Fund II in October 2021, a regulatory filing shows. Brooklands Capital Strategies and TAG Advisers acted as placement agents.

“When we started the firm, we set out with a vision of the world that was clean, connected, intelligent and sustainable. All of our new investors share our view, and we are thrilled to have brought on board such a terrific group of partners in Fund II,” Raj Atluru, co-founder and managing partner, said in a statement.

Activate invests in companies addressing climate change holistically, across technology led transitions in energy, transportation, logistics, cybersecurity and industrial systems. Its portfolio includes Generate Capital, Stem, Flexe, Volta and PosiGen.

Activate was founded in 2017 by veteran cleantech investors Atluru, Anup Jacob and David Lincoln, who continue as managing partners. Atluru previously co-founded and was managing director of Silver Lake Kraftwerk, Jacob was previously a founder and partner at sovereign wealth fund Mubadala Capital and Lincoln previously founded and was managing partner of Element Partner.