The democratisation of private markets has reached impact investing. Carbon Equity, a climate-focused venture capital platform, is seeking $75 million from retail and individual investors for its second fund.
Carbon Equity’s Climate Tech II vehicle is structured as a typical closed-end fund of funds with a minimum ticket size of €100,000. It will invest in venture capital funds, funds of funds and special-purpose vehicles, and have exposure to more than 150 underlying companies in the climate technology space. Carbon Equity, founded in 2021, is targeting returns of between 2x and 2.5x.
The fund launch comes two weeks after Octopus Investments brought an impact venture capital trust – which is funded by individual investors – back to market to raise £30 million ($37 million; €34 million).