Ecotone Partners, a climate-focused capital advisory firm, has completed the first close of its new Planet Fund, securing AU $25 million to invest in fast-growing climate companies. The fund, which has already started making its first investments, is a combined debt and equity fund designed to support commercially ready, capital-intensive climate solutions.
The Planet Fund bridges this gap in climate funding. Although many climate companies have technologies ready for commercial deployment, a clear path to profitability, and physical assets that debt funding can be secured against, they can struggle to find suitable investment partners like traditional venture capital, private equity, or debt providers.
These companies often require both debt and equity investment to fund their capital-intensive activities, particularly as many have a hardware component. Through its investments, The Planet Fund is building exposure to high-growth businesses targeting massive opportunities: the transition to renewable energy and the decarbonisation of numerous supply chains and systems, such as transport, industry, food, agriculture, and waste.
The fund has secured support from a reputable group of investors, including Wollemi Capital Group (Robyn Denholm Family Office), Tripple (Milgrom family office), climate-focused family office Understorey Ventures, clients of multi-family office Argus Advisory, and seasoned climate investor John McKinnon. The fund has secured support from LaunchVic under their VC Support Fund.
The Planet Fund will be led by a team with deep financial expertise. Co-founder and Director Amanda Goodman brings extensive experience in impact and multi-asset investing from her time at Goldman Sachs and in venture capital, having helped raise over $700 million. Partner Nicole Kleid Small has a background in venture capital, investment banking, and strategy consulting, previously serving as an Investment Director at VC fund Rampersand. Partner Jeremy Burke offers deep knowledge of green investments, having helped establish the UK Green Investment Bank and served on the board of climate disclosure platform CDP Worldwide.
The Planet Fund’s first investment is a mixed equity and debt investment in National Renewable Network (NRN). NRN partners with energy retailers to install solar panels and batteries on residential properties at no upfront cost. The energy retailers lease these assets from NRN, sell the generated energy to residents at a competitive rate, and earn additional revenue by trading excess energy to the grid.
Ecotone Partners Partner Nicole Kleid Small said, “The Planet Fund meets a critical funding gap, between a company’s R&D phase and when they’re operating at scale, profitably. A combination of debt and equity, provided by an investor with specialised understanding of climate tech, is required to help companies cross this chasm.”
Ecotone Partners Co-founder and Director, Amanda Goodman, stated: “Our anchor investors resonated with our investment product; while we target double-digit IRR, we also give investors an annual cash yield and the ability to redeem their units after 3 years. Investors value getting de-risked exposure to Australia’s climate tech companies, while retaining flexibility and liquidity.”
Investor Argus Advisory said, “A key area of emphasis for us is investments that deliver both environmental outcomes and strong financial performance. In Ecotone we see a fund manager who combines the acumen to identify lucrative investment opportunities in a complex and dynamic sector, with the commitment to initiatives that will accelerate the transition to a more sustainable future.”
Enjoy reading Eco Voice? Please help us by purchasing a GIFT Voucher or send one to a friend and encourage people to purchase trees or seeds via The Native Shop – www.nativeshop.com.au
Plants, seeds & more delivered to your door!
