Swiss PE Looking Launch $800M Green Funds

Capital Dynamics, the Swiss private equity firm, plans to raise about $800 million over the next two years for two green energy-focused funds that will support opportunities in North America as well as Australia and Europe.

The  two funds plan to invest in projects that can generate cash returns of 15 to 20 percent, Capital Dynamics Managing Director Karl Olsoni tells .

As G.E.R. previously reported, the The California Public Employees’ Retirement System (CalPERS) recently picked Zug, Switzerland-based Capital Dynamics to manage its $480 million Clean Energy & Technology fund. Pacific Corporate Group previously managed that fund.

Capital Dynamics is taking the long-view when it comes to renewables, undeterred by the growing pains currently impacting the industry.

One issue is  the commercial “valley of death” that traps a lot of mostly early-stage cleantech companies. The amount of money it take to lift  startups out of the valley has pushed VC backers to be more .

Another dark cloud is the clear lack of cash flow and as a result an ongoing dependence on government subsidies, especially for larger infrastructure projects like solar and wind farms.  This reality has made it difficult for well-established renewable energy companies to raise capital as Boston developer First Wind experienced when it was forced  to fold its IPO, unable to convince investors to buy shares.

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