Bedford Hills, New York-based private equity firm Joule Assets is launching a new $100m energy efficiency fund.
The Joule Energy Reduction Assets (ERA) Fund will target a fundraise of $100m and invest in energy efficiency and demand response markets throughout the US and globally.
A statement from the firm said units of saved energy had become a tangible asset.
‘In the simplest terms, we’ve created an investment fund that will expand financing for energy efficiency. On a grander scale, we believe that we have designed a fund that will aim to achieve the returns of top-performing private equity funds,’ said Joule Assets CEO, Mike Gordon.
‘We anticipate that our fund will tap into pre-existing marketplaces and for the first time provides investors – in addition to utilities – a way to benefit from those gains.’
Energy efficiency has been in the spotlight a considerable amount during the start of 2014, with the biggest-profile deal being Google’s recent $3.2bn acquisition of smart meter developer Nest.
Gordon said the ERA fund will focus on technologies that can tangibly demonstrate energy efficiency savings, such as ‘those realized by building controls, HVAC (heating, ventilation and air conditioning), programmable thermostats, LED lighting, and automated demand response.’
‘By aggregating small and medium efficiency projects targeting the $50k-500K range, Joule’s ERA Fund streamlines project finance making available financing features like performance-backed insurance and medium term service-based investments to the ERA Fund’s investors,’ he said.
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