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In brief: Oil & gas firm turns to climate investing

Canadian firm Longbow – which previously focused on oil and gas assets – has closed its first Energy Transition Fund at $141m.

Longbow Capital, a Canadian growth equity firm focused on the energy sector, has closed its first Energy Transition Fund at C$181 million ($141 million; €134 million) as it shifts its focus to the energy transition.

Longbow was founded in 1997 to invest in early stage oil and natural gas companies and associated infrastructure and service companies. The firm described its investment mandate as “focused on technology, infrastructure and associated products that will benefit from the energy transition” in a 2021 job description.

The firm was targeting between C$150 million and C$200 million for the fund and is pursuing North American companies in the energy sector “that help lower carbon emissions through efficient, cost effective and environmentally responsible solutions”, the firm said in a statement. Investors include Canadian bank BDC Capital, TD Bank Group and Caterpillar Ventures.

A number of oil- and gas-focused private equity firms have branched into energy transition industries in recent years. Energy Capital Partners, EIG Partners and Lime Rock Partners have launched energy transition funds alongside their main oil and gas funds. Carbon Infrastructure Partners announced a rebrand and launched a $500 million carbon capture fund last year after raising its sixth oil and gas fund in 2012 under the JOG Capital brand.