Clean Growth Fund has announced the second close of its second venture fund, moving the vehicle closer to its overall target. The close was anchored by a £22.5 million commitment from Border to Coast Pensions Partnership through its UK Opportunities Fund. The fund is dedicated to backing early stage climate technology companies across the United Kingdom and supporting the transition to a lower carbon economy.
Anchor Commitment from Border to Coast
Border to Coast Pensions Partnership made the anchor commitment through its UK Opportunities Fund, a vehicle launched in 2024 to invest in UK companies and assets. The fund seeks long term returns for its Local Government Pension Scheme Partner Funds while supporting domestic innovation. This commitment reflects a strategic focus on UK growth opportunities.
Additional LGPS Support
Strathclyde Pension Fund, which has backed Clean Growth Fund since its first fund, committed a further £10 million to Fund II. This brings Strathclyde's total investment in the second fund to £30 million. Islington Pension Fund and East Riding Pension Fund also participated in the second close, reinforcing support from UK local government pension schemes.
Fund Objectives and Early Portfolio
Clean Growth Fund II targets seed to Series A companies developing technologies with the potential to reduce carbon emissions. The fund plans to invest in approximately 25 companies across the United Kingdom. Its investment focus spans a range of sectors that are critical to the country's ongoing lower carbon transition.
A Place Based Investment Approach
The fund follows a place based investment strategy, supporting companies in established technology centres such as Oxford, Cambridge, and London. It also backs businesses in emerging innovation hubs across the United Kingdom. This funding approach aims to broaden the geographic distribution of institutional capital while capturing climate innovation opportunities nationwide.
Alignment with Institutional Goals
Clean Growth Fund states that it exists to connect British institutional capital with British innovation, where financial returns and environmental impact go hand in hand. The strategy matches the objectives of investors seeking exposure to innovative UK businesses operating in a growing sector. The fund is managed by an experienced team with a proven track record, offering an attractive opportunity to deliver long term value for Partner Funds.
Portfolio Momentum and Recent Exit
The second close follows a notable portfolio milestone, with Clean Growth Fund exiting clean heat network developer Rendesco in May 2026. Rendesco secured £100 million in new investment from Pioneer Point Partners at that time. This development demonstrates the fund's capacity to back companies that subsequently attract substantial later stage institutional capital.
Continued Investor Demand
The fund has now completed two closes for its second vehicle, indicating steady investor demand for UK climate technology exposure. Clean Growth Fund continues to seek additional commitments from institutional investors as it advances toward its final overall target. Its early portfolio and exit activity demonstrate growing maturity in the domestic climate technology market.
With strong commitments from Local Government Pension Scheme investors and a growing portfolio of climate technology companies, Clean Growth Fund II is well positioned to support the United Kingdom's lower carbon transition. Its place based investment model broadens the reach of institutional capital into innovation clusters nationwide. Early exits and continued investor backing signal positive momentum as the fund advances toward its final target.