With global investment in the clean energy transition hitting multiple trillions this year, Aligned Climate Capital completed the final closing of its second venture fund, Aligned Climate Fund 2 LP (ACF2), at $85 million.
The fund, which is twice the size of Aligned’s first fund, focuses on scaling proven clean energy and decarbonization solutions with investments across clean energy, efficient and resilient infrastructure, electric transportation, and sustainable land use. ACF2 included investments from the Ford Foundation and The Rockefeller Foundation, along with several other leading pensions, corporations, endowments, foundations, and family offices. To date, Aligned has raised $145 million through its venture strategy.
ACF2 invests exclusively in Seed through Series B companies that are scaling proven and financeable clean energy solutions. And these companies are developing projects and providing services that lower energy bills, increase clean energy production, and make it easier for more consumers to access the benefits of clean energy, electric vehicles, and other solutions. So far, Aligned has invested in nine companies through this fund, including BoxPower, BrightNight, CarbonQuest, ChargerHelp!, EVenergi, NYLE Water Heating Systems, Port Wind, UtilityAPI, and a geothermal company that has not yet been publicly announced.
Along with providing capital, Aligned actively supports its portfolio companies in securing additional financing, building market partnerships, and accelerating commercialization. And the investment strategy focuses on companies that can scale rapidly to increase revenues and reach profitability in the near-term. By avoiding long R&D and commercialization cycles, Aligned believes that its investments are more likely to generate strong, short-term returns for its investors.
The firm integrates environmental, social, and governance (ESG) factors into its investment processes and provides detailed impact reporting, ensuring financial performance aligns with long-term sustainability and emissions reductions. And Aligned has also donated 3% of ACF2’s carried interest to three nonprofits doing critical work on climate change: The Honnold Foundation, which expands solar energy access for underserved communities worldwide; the Climate & Clean Energy Equity Fund, which supports grassroots organizations advancing climate justice and equity; and Impact Capital Managers, which fosters collaboration and education within the impact investing community.
KEY QUOTES:
“The clean energy transition isn’t a technology challenge; it’s a deployment challenge. The solutions needed to decarbonize the economy already exist, but scaling them requires capital, expertise, and market access. Our venture fund is investing in companies accelerating this transition by deploying proven clean energy technologies that are already outcompeting fossil fuels and delivering real impact today.”
– Peter Davidson, CEO of Aligned Climate Capital
“The transition to clean energy has the potential to generate new, high-quality jobs for hardworking families while laying the foundation for sustainable progress that will serve our communities for generations to come. We are excited to partner with Aligned as they invest in businesses that support families, strengthen communities, and protect the planet.”
– Roy Swan, Head of Mission Investments at the Ford Foundation
“The Rockefeller Foundation is committed to advancing economic growth by supporting investments that bridge the gap between innovation and large-scale deployment. Aligned’s hybrid approach reduces risk while expanding clean energy access, making proven technologies more impactful for U.S. communities adapting to a changing energy landscape.”
– Maria Kozloski, Senior Vice President at The Rockefeller Foundation
