What’s wrong with the energy system? And what can we do about it? This week on Cleaning Up, Michael Liebrich is joined by Jonathan Maxwell, CEO and Founding Partner at SDCL. Jonathan offers his perspective on the pressing need to tackle energy efficiency and waste, drawing insights from the themes discussed in his book, The Edge.
The podcast is out now across YouTube and all major podcast platforms. You can find the episode at:
LONDON & NEW YORK – Sustainable Development Capital LLP (“SDCL” or the “Company”), a market leading developer, investor and fund manager focused on energy efficiency and decarbonisation solutions globally, is pleased to announce a minority investment from General Atlantic, a leading global growth investor, through the firm’s BeyondNetZero climate growth fund. General Atlantic’s BeyondNetZero fund is to acquire 24.9% of SDCL, subject to regulatory approval. The transaction is expected to complete in the coming months.
SDCL’s core strategy is to develop and invest in sustainable energy infrastructure assets that reduce cost and carbon emissions and improve the reliability of energy supply to a diverse range of customers. SDCL, which has assets under management of $2.5 billion, has a proven track record in delivering solutions for major technology, healthcare, commercial, industrial, and public sector clients. Solutions include enterprise and hyper-scale data centres, hospitals, heavy and light industrial facilities, universities, warehouses, and hotels.
The Company deploys a wide range of commercially proven technologies such as on-site renewables including solar paired with storage, renewable heat and cogeneration, as well as energy conservation measures such as LED lighting, energy efficient heating and cooling, motors, building management systems and controls. Notable clients have included Citigroup, Santander, the UK National Health Service, the Irish Health Service Executive, Tesco, Rolls Royce, ArcelorMittal, and Panasonic.
General Atlantic’s BeyondNetZero fund combines the firm’s global platform and growth orientation with a dedicated team of investors and industry executives across the climate and energy sectors. The fund identifies and supports growth companies delivering innovative climate solutions that have the potential to meet and exceed net-zero emissions targets, with a focus on decarbonization, energy efficiency, resource conservation and emissions management. Following this new investment, General Atlantic will partner with SDCL to support the buildout of the Company’s operating capabilities to help drive its next phase of expansion.
As part of the transaction, General Atlantic Managing Director Michael Bevan will join SDCL’s board of directors. Mr. Bevan brings with him over 25 years of experience exclusively focused on sustainable growth investing. Previously, he was a General Partner at Element Partners, a firm dedicated to growth equity investing in environmental businesses.
In addition to the investment from General Atlantic’s BeyondNetZero fund, Tony Davis, CEO & CIO of Inherent Group and a co-founder of Anchorage Capital Group, will also become a shareholder of the Company and act as an advisor to the firm.
Jonathan Maxwell, CEO of Sustainable Development Capital LLP, said: “SDCL is delighted to partner with General Atlantic’s BeyondNetZero team. We believe that resource efficiency is key to sustainability and that energy efficiency is one of the largest, fastest, cheapest, and cleanest source of greenhouse gas emission reductions, energy cost reductions and energy security.[1] The world cannot reach net zero, or beyond, without it. This fact is key to SDCL and BeyondNetZero’s strategies.
“Supported by General Atlantic’s vision, track record and expertise in technology and investment, BeyondNetZero is a complementary partner to help SDCL deliver on its ambitions to develop and invest in the most efficient and decentralized energy solutions for our clients, and to continue to deliver strong and sustainable returns for our investors in doing so.
We’re also delighted to have welcomed Tony Davis onboard as a shareholder, whose considerable expertise in sustainable investing and private equity will help support the SDCL Private Equity and its infrastructure investment teams.”
Michael Bevan, Managing Director at General Atlantic’s BeyondNetZero, said: “We are excited to support Jonathan and the SDCL team in their mission to develop scalable net zero solutions. Energy efficiency is a critical, but too often overlooked, component of the solution set that will enable the global energy economy to transition to net-zero, and we believe this market needs both real asset capital and growth equity to power transformational change. SDCL has built a differentiated platform led by a leading management team that has a demonstrable track record of execution and returns. We look forward to helping SDCL scale its ability to provide capital solutions of all kinds to clients across the energy efficiency markets.”
Emanuel Citron, Managing Partner of SDCL Private Equity, said, “Energy efficiency is as important to the energy transition as adding clean new supply. SDCL is expert in developing and managing sustainable energy projects for critical uses, and as asset owners, we know which technologies, services and software are critical to their efficient operation. We have known the BeyondNetZero team for years and believe that with their partnership, we hope to back the best of these businesses and to enable the further scaling of energy efficiency solutions worldwide.”
SDCL was represented by Herbert Smith Freehills. Jefferies International Limited acted as sole financial adviser to SDCL on the transaction. General Atlantic was represented by Freshfields Bruckhaus Deringer with additional support from Deloitte.
General Atlantic joins Emigrant Partners, a New York based strategic capital provider that invested into SDCL in 2022, as an investor in the Company.
Jenny Souza, CEO & President of Emigrant Partners said, “We are thrilled to see SDCL continue to experience impressive growth and success, while also being such a thoughtful and impactful organization. We have been tremendous believers in the SDCL leadership team and their long-term vision since we first provided strategic capital to SDCL in 2022; we are excited to continue our partnership with the SDCL team alongside General Atlantic.”
Notes to editors
About Sustainable Development Capital LLP
SDCL was established in 2007 and has a proven track record of financing and developing clean energy, energy efficiency, and decentralised energy infrastructure projects in the UK, Continental Europe, North America, and Asia. SDCL is headquartered in London and has an AUM of over $2.5 billion. The group and its investment vehicles also operate worldwide from offices in New York, Greenwich, Dublin, Hong Kong, and Singapore. SDCL is authorised and regulated in the UK by the Financial Conduct Authority. SDCL’s Founder and CEO is Jonathan Maxwell, whose book, ‘The Edge: how competition for resources is pushing the world, and its climate, to the brink, and what we can do about it’ was published in 2023.
About General Atlantic and BeyondNetZero
General Atlantic is a leading global growth investor with more than four decades of experience providing capital and strategic support for over 500 growth companies throughout its history. Established in 1980 to partner with visionary entrepreneurs and deliver lasting impact, the firm combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to scale innovative businesses around the world. BeyondNetZero is the climate growth fund of General Atlantic that invests in growth companies delivering innovative climate solutions that have the potential to meet and exceed net-zero emissions targets, with a focus on decarbonization, energy efficiency, resource conservation and emissions management. General Atlantic has approximately $84 billion in assets under management inclusive of all products as of March 31, 2024, and more than 300 investment professionals. For more information on General Atlantic, please visit: www.generalatlantic.com.
[1] https://www.iea.org/commentaries/how-energy-efficiency-will-power-net-zero-climate-goals
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Mayor announces new £100 million fund to accelerate London-wide decarbonisation, in partnership with leading UK investor
New London Efficient and Decentralised Generation of Energy Fund will support new low-carbon infrastructure projects across London
Sustainable Development Capital LLP (SDCL) to partner with City Hall to manage the Fund
The Mayor of London, Sadiq Khan has announced a new £100 million fund to support decarbonisation projects across London in partnership with Sustainable Development Capital LLP (SDCL).
The London Efficient and Decentralised Generation of Energy Fund partnership will unlock additional investment from the private sector and enable many more organisations across the capital to make energy efficient choices. Sadiq has committed £50 million from City Hall which is to be matched by funds managed by SDCL, who will also manage the Fund.
London Efficient and Decentralised Generation of Energy Fund will invest in projects that have the capacity to achieve significant reductions in energy usage, greenhouse gas emissions or other pollutants across London. Building on SDCL’s expertise in low-carbon infrastructure, the Fund will focus on energy efficiency, on-site generation and clean energy solutions – areas key to helping London achieve net zero by 2030 – like installing building management systems, heat pumps, solar panels, and electric vehicle charging.
The London Efficient and Decentralised Generation of Energy Fund will play a vital role in increasing the level of private investment in low-carbon infrastructure in London, acting as a keystone investment for the London Climate Finance Facility, which also includes the Green Finance Fund. The London Efficient and Decentralised Generation of Energy Fund will fund numerous projects over the course of the next four years, accelerating London’s shift to net zero and solidifying London’s leading position as a city delivering climate action. The Fund will set a global example of how private finance and cities can work together to achieve decarbonisation goals by investing in projects that will promote green jobs and low-carbon infrastructure.
London was the first global city to declare a climate emergency in 2018 and Sadiq has set an ambitious target for London to reach net zero by 2030, ahead of the UK Government’s 2050 goal, to mitigate the most devastating impacts of climate change. The London Efficient and Decentralised Generation of Energy Fund is one of the many ways Sadiq is working closely with the private sector to help reduce London’s carbon emissions.
The Mayor of London, Sadiq Khan, said: “I’m committed to making London net zero by 2030 and this is achievable, as long as we work closely together to help deliver energy efficient and low carbon projects.
“This new fund will help us unlock additional investment from the private sector and enable us to support many more organisations across the city as they make energy efficient choices.
“London is a world-leading city and this fund will support hundreds of companies as we build a better, cleaner and greener London for all.”
Jonathan Maxwell, Founder and CEO of SDCL, said: “London is a global hub for servicing the transition and finding creative ways for private capital to play its full part in unlocking projects that are vital to get to net zero. Since SDCL launched we’ve worked with industrial customers around the world to help improve their economic competitiveness and drive their decarbonisation strategies. We’ve a long track record of working with municipalities too and I am delighted to work with the GLA and the Mayor Sadiq Khan on this latest initiative. As the C40 has made clear, cities are vital agents of change when it comes to net zero. With the London Efficient and Decentralised Generation of Energy Fund, London continues to lead by example and I look forward to seeing the types of projects we can help to deliver.”
Mark Watts, Executive Director at C40 said: “This new fund is exciting news and an important step towards accelerating the delivery of London’s carbon targets. By reducing the demand for energy and increasing the uptake of clean energy, this initiative will contribute significantly to phasing out the use of fossil fuels in the city – reducing emissions and improving air quality.”
Sustainable Development Capital LLP (SDCL)
Established in 2007, Sustainable Development Capital LLP (“SDCL”) is a specialist investment firm with a proven track record of financing and developing clean energy, energy efficiency and decentralised energy infrastructure projects in the UK, Continental Europe, North America, and Asia. SDCL was founded to facilitate investment into environmental infrastructure markets and has since launched several funds pioneering energy efficiency solutions. SDCL has raised several innovative energy efficiency investment vehicles, including the first such vehicle listed on the LSE. SDCL has also completed more than 50 green energy solution investments since 2007 and has over $2 billion of AUM. For more information, visit www.sdclgroup.com
About the London Climate Finance Facility
The Mayor’s 2021 manifesto committed to establish a finance facility to further his environmental aims. The GLA commissioned the Green Finance Institute (GFI) to advise on the approach and structures for a London Climate Finance Facility (LCFF).
The Green Finance Institute outlined options to create a London Climate Finance Facility. This includes the Green Finance Fund, which enables local authorities, social housing providers, NHS bodies, universities and colleges to access funding for their green projects and the London Efficient and Decentralised Generation of Energy Fund which will support any London organisation aiming to reduce their carbon footprint.
About the Green Finance Fund
The Mayor’s Green Finance Fund was launched at London Climate Action Week 2023 and will lend up to £500m to projects that help London meet its net zero ambitions. The aim is to accelerate decarbonisation by lowering the cost of borrowing for eligible organisations.
Sustainable Development Capital LLP acquires private equity firm Volery Capital to create a ‘one stop shop’ for sustainable investment capital
• Sustainable Development Capital LLP (“SDCL”) acquires US-based private equity firm Volery Capital (“Volery”), expanding its investment offering and its North American footprint
• SDCL’s position as a leading energy efficiency investment platform.
• Move bolsters SDCL’s ability to provide capital to growth stage technology, software and services companies that are poised to scale rapidly
• The combined firm manages more than US$2 billion of assets across over 50 investments worldwide
SDCL, a leader in funding and operating energy efficiency and decentralized energy generation projects, has acquired Volery, a US-based private equity firm focused on the energy transition. The transaction brings together SDCL’s extensive real assets expertise with Volery’s institutional private equity investment capabilities, enabling SDCL to participate in a broader range of energy transition opportunities focused on energy efficiency.
The combined platform will support SDCL customers that want to benefit from cleaner, cheaper and more resilient energy solutions by funding their energy efficiency and decentralized generation projects, as well as the underlying technologies, software and services that are propelling these energy solutions.
The Volery team, led by Managing Partner Emanuel Citron, and Partners Michael Pertnoy and Cort Ahl, will oversee SDCL’s private equity business going forward. They will work closely with SDCL’s real asset investment teams to invest in energy transition “picks and shovels” companies with proven business models that are ready to scale. As an owner and operator of more than US$2 billion of energy assets, SDCL is well positioned to help identify high quality opportunities and to be a strategic partner to its portfolio companies as they scale.
Volery has been a shareholder, board member and strategic partner of SDCL for several years. The two firms have collaborated on a variety of strategic growth initiatives and the acquisition capitalises on the strong synergies between the organisations. Ares Management and Folsom Point Funding, which had previously made minority investments in Volery, will continue as minority investors in the combined company. Volery will also continue to manage its existing private equity vehicles, including Volery Capital Partners Fund I and an energy transition mandate managed on behalf of ZOMA Capital.
SDCL and Volery are joining forces based on the shared belief that achieving decarbonization depends on rapidly scaling energy efficiency solutions. Energy efficiency solutions have been overlooked by capital markets despite being a near-term and cost-effective source of emissions reductions.
Volery was represented by Scott Naidech and Nicholas Usher along with support from the global tax, transactional and fund teams from Winston & Strawn.
Jonathan Maxwell, Founder and CEO of SDCL, said:
”We are in uniquely exciting times for the energy transition, and the financial sector has a vital part to play in delivering net zero. Sustainable Development Capital was founded with a view to help unlock capital to deliver decarbonisation at scale. We’ve been lucky to benefit from Volery’s support for many years and I am excited to bring them formally into the SDCL group to help us broaden the type of financing options we are able to provide. I look forward to seeing what can be achieved in private equity over the next decade as the world moves from making climate pledges to delivering on them at pace and scale.”
Manny Citron, Managing Partner of Volery, said:
”We have worked closely with Jonathan, who is a pioneer in the energy transition, and the rest of the talented team at SDCL for many years. Their in-house expertise, experience, relationships and processes position the firm to continue to scale distributed energy and energy efficiency solutions for years to come. For the energy transition to succeed, we will need to make private equity available to the growth stage companies building products and services that will, alongside important real asset initiatives, enable decarbonization. We are excited to continue to pursue this opportunity as part of SDCL, where together we can create a one-stop-shop financing platform focused entirely on the energy transition.”
Sustainable Development Capital LLP
Established in 2007, Sustainable Development Capital LLP is a specialist investment firm with a proven track record of financing and developing clean energy, energy efficiency and decentralized energy projects in the UK, Continental Europe, North America, and Asia. SDCL was founded to facilitate investment into environmental infrastructure markets and has since launched several funds pioneering energy efficiency solutions. SDCL has raised several innovative energy efficiency investment vehicles, including the first such vehicle listed on the London Stock Exchange. SDCL has also completed more than 50 green energy solution investments since 2007 and has over $2 billion of AUM. For more information, visit www.sdclgroup.com
Volery Capital
Volery Capital is a growth-stage private equity firm that invests in rapidly growing companies that power the energy transition. Volery’s portfolio includes technology, software, and services companies that are thematically focused on the energy transition and resource efficiency. Volery manages several private equity vehicles with an explicit focus on companies that address climate change and/or promote inclusive economic growth, as well as a particular mandate dedicated to investments that support grid modernization. For more information, visit www.volerycapital.com.
‘The Edge’ is a very contemporary look at how the world has been transformed by recent events, focusing on climate change, the war in Ukraine, the next resource flashpoints, and the challenges the world faces around energy, security, the environment and the economy.
Written from an investor’s perspective from inside the energy industry, it will help businesses and economies apparently at the mercy of the markets to transition towards sustainability, productivity and prosperity, and help everyone understand the world in 2023. In the face of crisis and opportunity, we are at a turning point in history.
https://www.cnbc.com/video/2023/02/23/europe-nat-gas-price-drops-after-supply-diversification-says-sustainable-development-capitals-maxwell.html
SDCL CEO Jonathan Maxwell writes in City AM on how:
“A blank cheque for two years of capped energy bills was a perverse kind of plan”
you can read the full article here:
