Aligned Climate Capital (ACC) is a U.S.-based asset management firm focused exclusively on investments that support the clean energy transition and decarbonization of the global economy and its infrastructure. Pulse 2.0 interviewed Aligned Climate Capital CEO Peter Davidson to gain a deeper understanding of the firm.
Peter Davidson’s Background
Could you tell me more about your background? Davidson said:
“Certainly, I am the founder and CEO of Aligned Climate Capital, where we invest in the people and projects powering the clean energy transition. My path has not been linear: I have led the U.S. Department of Energy’s $32 billion loan program, held senior roles at the Port Authority of New York and New Jersey and New York State’s development agency, and spent time in investment banking at Morgan Stanley. Entrepreneurship has been a constant thread throughout my career as I have also launched half a dozen companies. Though I studied at Stanford and Harvard Business School, I’ve naturally made New York City my home base for making an impact in climate finance.”
Evolution Of The Firm’s Thesis
How has your firm’s thesis evolved over time? Davidson noted:
“Our thesis has not so much evolved as it has deepened. From the start, we believed that accelerating decarbonization was more a matter of deployment than innovation. Over time, the market has validated that view, with a growing demand for real-world, scalable solutions.”
“What has evolved is our ability to execute on that thesis across both venture and infrastructure. We are still investing in proven technologies, but now, we have more capital and a sharper sense of where we can deliver the greatest impact.”
Favorite Memory
What has been your favorite memory working for your firm so far? Davidson reflected:
“One of my favorite memories has been when our New York and Los Angeles teams come together — whether for our annual retreat or when the LA team joins us in New York. It is always valuable to step back from the day-to-day and spend time together as a team over a shared breakfast, dinner, or even a round of mini golf. These moments remind me that we are not just building a business — we are building a strong, dedicated community of people who take pride in working together toward a shared mission.”
Significant Milestones
What have been some of your firm’s most significant milestones? Davidson cited:
“Two of our biggest milestones recently happened: the closings of Aligned Climate Fund 2 (ACF2) and Aligned Solar Partners 6 (ASP6) – our second venture capital fund and our largest infrastructure fund. In today’s challenging fundraising environment, particularly for climate-focused strategies, we believe that raising $85 million for ACF2 and more than $240 million for ASP6 reflects conviction in our differentiated investment thesis.”
“What excites us most is the tangible impact we are achieving with that capital. ACF2 supports early-stage companies building the next generation of climate infrastructure, while ASP6 scales our commitment to middle-market solar. These are more than just clean energy investments – they are investments we expect will generate value for our investors while accelerating environmental progress. In our view, a profitable portfolio can and should be a sustainable one.”
Investment Success Stories
Would you like to share any specific investment success stories? Davidson highlighted:
“Summit Ridge Energy stands out as a success story of which I am particularly proud. Our early belief in their team and business model helped them scale into one of the nation’s leading community solar developers. Watching them grow, deliver meaningful climate impact, and drive strong financial outcomes has been incredibly rewarding; it is a real testament to what aligned capital and values can achieve.”
Total AUM/Other Metrics
Can you discuss total AUM or any other notable metrics? Davidson revealed:
“As of December 2024, we manage approximately $2.1 billion in assets. Our culture is built on execution and since 2019, we have successfully closed over 65 investments in clean energy companies and projects.”
Industry Focus
What are some of the industries that your firm is focused on? Davidson pointed out:
“We have built our climate venture strategy around four key sectors: clean energy, efficient and resilient infrastructure, electric transportation, and sustainable land use. Rather than chasing speculative technologies, we invest in proven solutions ready for broader deployment.”
“Our recent venture investments reflect that strategy. In ACF2, we invested in XGS Energy, a company expanding the reach of geothermal power with technology that makes it viable in new geographies. We also backed ChargerHelp!, which enhances EV charging uptime through workforce-driven maintenance.”
“Separately, through our infrastructure strategy, we are also advancing the clean energy transition via distributed solar. Our Aligned Solar Partners (ASP) funds focus on the often-overlooked middle market of solar—community and commercial & industrial (C&I). These projects strike the right balance of size and siting flexibility, making them well-aligned with the energy needs of specific communities. We recently closed ASP6, our largest solar fund to date and have already supported the development of five projects across seven states.”
“We’re building businesses with clear economics and efficient growth paths, not funding R&D projects. Our investments target that critical Seed-to-Series B runway, with an eye toward companies that will ultimately attract infrastructure-scale capital. That’s where we firmly believe real, lasting impact happens.”
Differentiation From Other Firms
What differentiates Aligned from other firms? Davidson emphasized:
“What makes Aligned different is our unique blend of deep expertise, a clear focus, and a mission-driven approach. With over a decade in the clean energy space, we’ve had a front-row seat to the rapid growth of climate technology. Unlike generalist funds or those chasing the latest tech, we focus on proven, market-ready solutions addressing the urgent needs of today’s energy landscape. Our team brings a unique mix of finance, technology, and policy expertise, allowing us to navigate this transition with unmatched insight.”
“We also believe in doing good by doing well. Our investments aim to deliver measurable financial returns while creating a tangible environmental impact. Plus, through our dual-impact model, we direct a portion of our carried interest to climate nonprofits, ensuring that financial success translates into meaningful climate action.”
Challenges Faced
What are some of the challenges you faced while working at the firm? Davidson acknowledged:
“Like any firm operating at the intersection of finance and climate, we’ve faced political and regulatory headwinds. Navigating that requires staying closely connected with our stakeholders, communicating openly, and ensuring our team is equipped with the expertise to deliver regardless of the political climate.”
“Another major challenge early on was attracting institutional investors. I’m incredibly proud that we’ve now overcome that hurdle, securing top-tier institutional backing for both ACF2 and ASP6. That’s a huge achievement for our firm and a testament to our team’s strength and strategy.”
Future Goals
What are some of your firm’s future goals? Davidson concluded:
“In the coming months, we will be focused on identifying and deploying the capital we recently raised into climate solutions that fall within our target sectors and are commercially viable.”
