Clean Technology Funds Gain Interest from Germany
When it comes to clean technology investing, North American investors have been the front runners. In 2009, however, it was European investors’ support for this sector that gave it a significant boost. According to market researchers Cleantech Group and Deloitte, European venture-capital investment in clean tech declined by only 12 percent in 2009 as opposed to 42 percent for North American investment.1
A major market that is playing an important role in the continuing stability of the sector is Germany. BHA analysts have noticed increased interest from German investors in clean tech. During recent conversations, these investors have expressed that they want to invest in the sector not only because it offers attractive returns but also because it is a socially responsible investment.
Additionally, German investors are looking at multiple ways to enter the market. Although many are considering venture capital funds, others are evaluating long-only funds offered by hedge funds.
A German fund of private equity funds launched a fund dedicated to clean technology. The firm said it started the fund because of the attractive opportunities as well as the amount of investor interest. The firm has capital and is ready to make opportunistic allocations.
A German private bank, on the other hand, is interested in long-only funds focused in the clean technology sector. The bank told BHA analysts that many German investors are interested in the space. Therefore, it launched a clean tech fund of funds in order to give more investors an opportunity to gain access to this sector.
BHA analysts expect investors will continue to have an interest in the clean tech sector since it is being backed by governments across the globe. If these investments are profitable as well as environmentally ethical, it is a sector that investors will continue to add to their portfolios.
1 EurActiv Network, “Europe catches up on clean tech venture investment,” January 12, 2010.