GEF Capital plans $600 million fund after solar investment success
Washington, D.C.-based private equity climate-focused firm GEF Capital Partners recently closed its GEF US Climate Solutions Fund II, raising $325 million in excess of its $250 million goal. The fund is intended to finance mid-market businesses throughout the U.S. and Canada that lead to energy efficiency, pollution avoidance, and the shift to renewable power.
Supported by progressive investors like Blue Earth Capital, HQ Capital, ODDO BHF, INGKA Investments, and others, the fund is positioned to acquire controlling interests in portfolio companies focused on established technologies with superior environmental impacts. GEF Capital has already invested capital into a number of strategic ventures, including Next Step Energy Solutions (LED lighting and retrofitting services) and Premier Energies (solar cell and module production).
One of the key successes is Premier Energies, which received an investment from GEF of around ₹200 crore (~$27 million) in 2021. With Premier soon to issue its IPO in August 2024, GEF is set to take nearly 22× returns—its ₹177 crore investment growing to around ₹3,988 crore ($498 million). This flagship deal speaks to the fund’s capability to produce disproportionate financial returns as well as promote clean-energy manufacture.
While there is no confirmed report that GEF is after a $600 million vehicle, the company’s record—such as oversubscribed Fund II worth $325 million and high-performing solar investments—poises it for future fund raising to scale renewable and energy-efficient solutions.
