Clean Growth Fund has completed the second close of Fund II at £81.5 million, taking the specialist UK climate technology venture fund more than halfway toward its £150 million target.
The close was anchored by a £22.5 million commitment from Border to Coast Pensions Partnership’s UK Opportunities Fund, which was launched in 2024 to pursue long-term risk-adjusted returns while supporting UK economic growth.
Border to Coast represents 18 Local Government Pension Scheme partner funds with approximately £120 billion in combined assets.
Clean Growth Fund II focuses on Seed to Series A UK climate technology companies developing technologies intended to reduce carbon emissions and support the growth of Britain’s green economy.
The fund is targeting a 20% net internal rate of return.
The second close also included an additional £10 million commitment from Strathclyde Pension Fund, increasing Strathclyde’s total commitment to Fund II to £30 million.
Strathclyde has backed Clean Growth Fund since its first fund.
Other Fund II investors include Islington Pension Fund and East Riding Pension Fund, expanding the group of UK pension institutions backing the strategy.
Clean Growth Fund said its first vehicle invested in 19 UK startups that are collectively on track to abate approximately 27 million metric tons of CO2 equivalent annually by 2030.
Fund II is targeting investments in 25 companies.
The second fund has already invested in four startups based across Sheffield, Bristol, Cardiff and London, with portfolio companies developing technologies in battery systems, food, heavy industry and buildings.
Clean Growth Fund’s strategy emphasizes investing in companies across the U.K., spanning established innovation centers such as Oxford, Cambridge and London as well as emerging regional technology hubs.
The Fund II close follows Clean Growth Fund’s exit from Rendesco in May 2026.
Rendesco, a clean heat network developer, subsequently secured £100 million in new investment from Pioneer Point Partners.
Clean Growth Fund was advised by Pinsent Masons, with the legal team led by Ian Warner.
KEY QUOTES:
“Border to Coast joining Fund II takes us past the halfway mark towards our £150 million target. Increasingly, major institutional investors are looking to UK climate tech for exactly what it offers – strong long-term returns alongside real economic growth right across the country. We exist to connect British institutional capital with British innovation – the returns and the impact go hand-in-hand.
Fund I invested in 19 UK startups on track to abate 27m tCO2e per year by 2030, equivalent to 1.5x the carbon absorbed by all UK forests. Fund II aims to back 25 companies and scale them. It has already invested in four start-ups, across Sheffield, Bristol, Cardiff and London, developing ground breaking innovations in battery tech, food, heavy industry and buildings – creating good quality regional jobs and driving clean industrial growth.
The UK has the world-class universities, the scientific talent, the regulatory framework, and the policy ambition – and its net zero economy is growing more than three times faster than the economy as a whole. That is the opportunity Border to Coast is moving to capture, ahead of the curve. The more capital that gets behind British innovation, the faster it scales into global winners. This is where the growth is, and I’m confident about how much further we can take it.”
Beverley Gower-Jones OBE FEI, Founder and Managing Partner of Clean Growth Fund
“Border to Coast’s UK Opportunities Fund targets investment into high-quality UK companies and assets that can deliver attractive returns whilst contributing to economic growth and development across the UK. Clean Growth Fund II strongly matches these objectives, providing exposure to innovative UK businesses operating in a growing sector, managed by an experienced team with a proven track record. We believe it offers an attractive opportunity to deliver long-term value for our Partner Funds while supporting UK innovation.”
Keith Angood, Portfolio Manager at Border to Coast Pensions Partnership
“We first invested in Clean Growth Fund because it offered a compelling opportunity to deliver strong long-term returns for our members while backing UK innovation. That thesis has materialised, and our increased commitment to Fund II reflects our continued confidence in the team as well as the scale and strength of the opportunity. This is exactly the kind of productive, homegrown investment we believe can deliver for our members over the long term.”
Lorraine Martin, Investment Manager at Strathclyde Pension Fund
“Rendesco is exactly the kind of British success story Clean Growth Fund exists to back. It’s fantastic to have supported the business on its journey and to see it continue to scale and attract further investment, as it helps decarbonise heat for homes and businesses nationwide”.
Beverley Gower-Jones OBE FEI, Founder and Managing Partner of Clean Growth Fund
