Calgary-based private equity firm Longbow Capital looks to continue investing in emission-tackling companies after securing an initial close of $150 million for its second energy transition fund. 

Longbow’s first Energy Transition Fund reportedly raised a total of $181 million. 

The initial close of Energy Transition Fund II, which has a target of $250 million, is currently backed by “institutional and family office investors,” Longbow said in a statement. Among its backers are returning anchor investors TD Bank Group, Caterpillar Ventures, and the federally funded BDC Capital.

Longbow said the fund has a mandate to invest in North American businesses that are “expected to benefit from the momentum behind the energy transition,” with a focus on companies that help lower carbon emissions through “efficient and cost effective solutions.” BetaKit has reached out to Longbow for more details on the fund and its thesis but did not hear back by publication time. 

The fund has completed one investment to date, having participated in the $210-million equity round of Houston, Texas-based energy management platform VoltaGrid back in March. 

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Founded in 1997, Longbow Capital claims it has approximately $1.5 billion in assets under management, which span the energy and power sector, including low carbon energy solutions, energy and power production, infrastructure, services and technology. Longbow’s first Energy Transition Fund reportedly raised a total of $181 million in 2022. 

Longbow managing partner Tyson Birchall said in a statement that the firm continues to see investment opportunities that support the decarbonization of energy systems. 

“Growing power demand from electrification of the home and mobility, the onshoring of manufacturing and data centre development has fundamentally changed the energy landscape, and we believe we are well positioned to benefit from these megatrends,” Birchall said. 

The firm has backed Canadian cleantech firms such as Clir Renewables and Arcus Power, and was recognized with the PE Deal of the Year at this year’s CVCA awards for its big exit from hydrogen and natural gas distributor Certarus. 

Feature image courtesy Longbow Capital.

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