Lightrock, a backer of London-based neobank Niyo and “wood processing” company Kebony, has secured around $834 million (€860 million) for a new fund focused on climate technology. did. The private equity and venture firm will fund start-ups in areas such as clean energy, decarbonization and sustainable agriculture.
Lightrock will issue checks for sustainability-focused startups in Europe and North America for a minimum of $10 million and a maximum of about $39 million, the company said in a statement about the fund. In May, he also announced his $300 million fund aimed at startups in Latin America.
Lightrock has ties to the royal family through a network of subsidiaries, so finding the raised money wasn’t all that difficult. The company is owned by LGT, which invests in wealthy people and institutions. LGT is owned by the royal family of Liechtenstein, which has stepped up its investment in environmental and social impact since this very big tax scandal.
LGT prides itself on its focus on sustainability, and to its credit, the company is taking steps to limit its impact on the climate. Still, we haven’t moved away from fossil fuels.
LGT will invest in oil and gas producers as long as they are “strongly committed to the energy transition and have low income from oil and gas production”. LGT’s policy also allows investment in businesses that generate income through thermal coal (limited to ‘up to 5%’ of gross income as of January).
LightRock said its climate fund is funded by investors including LGT, some of LGT’s clients, the Grantham Foundation and Singapore-owned holding company Temasek. Temasek’s portfolio includes significant gas and oil holdings that drive climate change.