Energy Impact Partners (EIP) has closed its early-stage climate fund – Deep Decarbonization Frontier Fund 1 – on $485 million, surpassing its targeted $350 million.
New York-based EIP has raised over $3 billion since it launched in 2015. The firm said it saw the majority of existing investors commit to the Frontier Fund.
Launched at the start of the year, the vehicle seeks to finance early-stage climate tech companies that are developing solutions to overhaul high-polluting industries and drive decarbonisation. “We are looking at the earliest stages for solutions to climate problems and to develop real pathways to commercial success, helping complete the last mile of deep decarbonization,” partner Ashwin Shashindranath said.
The Frontier Fund LP base consists of mainly large utility, energy and industrial companies, including Microsoft Climate Innovation Fund, Williams Cos, Duke Energy, AvalonBay Communities, Burns & McDonnell and Southern Co and TC Energy Corp, the firm told New Private Markets.
These corporations, which also invest in the firm’s fund, offer advice on potential deals – an unusual aspect to EIP’s investment model.
EIP started deploying its Frontier Fund in early 2021, investing $15 million per deal in start-ups. So far, the vehicle has already financed 12 companies, including: Form Energy (multi-day energy storage), Nitricity (zero-carbon fertilizer), Carbon America (point-source carbon capture), Sublime Systems (electrified zero-carbon cement), Electric Hydrogen (low-cost renewable H2) and Rondo Energy (thermal storage for industrial heat).
EIP’s stable of funds includes a $1 billion flagship vehicle investing in more mature tech companies; the Elevate Fund, which launched last year and backs DE&I initiatives; and a European venture fund that raised $390 million this year.