(OFFICIAL) Energy Impact Partners obtains support from ADIA and Microsoft for the first European fund

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  • Microsoft makes first investment in climate tech fund
  • Abu Dhabi’s sovereign wealth fund also invests
  • Search for companies driving the energy transition

LONDON, Sept 13 (Reuters) – Energy Impact Partners (EIP), a climate-focused venture capital firm, has launched its first European fund, raising 390 million euros ($392.03 million) from investors, including the Abu Dhabi Investment Authority, its co-manager told Reuters. .

EIP, which manages about $2.5 billion in assets, said the fund would seek companies in the region contributing to the transition to a low-carbon economy.

In addition to traditional funding for start-ups, EIP also offers them the opportunity to meet and work with a coalition of large industrial companies with which it has partnered, some interested in the technologies introduced by new players.

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This coalition of more than 50 companies covers some of the most emitting sectors such as energy, transport and agriculture, many of which have also backed the new fund, including Fortum (FORTUM.HE) and Galp (GALP.LS) .

To date, EIP said the model of connecting strategic investors to start-ups has seen portfolio companies sign more than 350 deals with a combined value of more than $1 billion.

“These incumbents are the ones who own the critical infrastructure, and if we want them to decarbonise, we have to work with them,” said co-manager Nazo Moosa.

Other companies investing in the European fund include Electricité de France (EDF.PA), Shell (SHEL.L), EWE AG (LANDWE.UL), Mainova (MNVG.F), AGL Energy Ltd (AGL.AX), TrønderEnergi AS (TROEN.UL) and Microsoft (MSFT.O), through its Climate Innovation Fund.

Other financial investors include Nysnø Climate Investments, backed by the Norwegian government, and Dutch pension fund ABP, through its asset manager APG.

Moosa said the fund will invest between $10 million and $40 million in Series A, B and C funding rounds, and plans to invest the money over the next two years in up to 18 companies.

To date, EIP has invested in a number of European companies, including renewable energy provider Zolar, portable battery provider Instagrid and environmental, social and governance data provider ESG Book.

Moosa said Europe leads the world in various aspects of the low-carbon transition, making it a fertile hunting ground for new businesses.

Europe aspires to become the first carbon-neutral continent, and regulations should support this goal, creating a likely boost for portfolio companies.

Brandon Middaugh, director of the Microsoft Climate Innovation Fund, said in a statement that he chose the EIP as his first fund investment in climate technology as part of the company’s efforts to go carbon negative by 2030.

($1 = 0.9948 euros)

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Reporting by Simon Jessop, editing by Deepa Babington

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