Exclusive: Wellington raises $385M for first private climate fund
Illustration: Sarah Grillo/Axios
Wellington Management raised $385 million for its first private fund focused solely on climate investments, the firm tells Axios.
Why it matters: It's a significant commitment to climate by one of the world's biggest investors.
The big picture: Wellington, with more than $1.1 trillion assets under management, has invested in climate companies through its public market funds since 2007, but it hadn't yet established a private fund dedicated to the space.
The latest: The Boston-based investor last week held final close on its Climate Innovation Fund, concluding a lengthy raise that started in the second half of 2021.
- LPs include sovereign funds, sovereign pensions, insurance providers, banks, and wealthy individuals, Greg Wasserman, Wellington's head of private climate investing, tells Axios.
Driving the news: The fund will focus on software, data, AI and software-enabled hardware, where tech has largely been de-risked and the company has evolved beyond small pilots.
- "We are very much more tech than science," Wasserman says. "We are not what I'd think of as a cleantech fund. We are not investing in asset-heavy projects."
Case in point: The fund's investments so far include circular economy service Trove Recommerce, energy data provider Arcadia, electrical panel manufacturer Span, mushroom-protein startup Meati, robot recycling developer Amp Robotics, and energy analytics provider Orennia.
What's next: Wellington expects to back 15-20 startups through its climate fund, writing initial checks ranging from $10 million to $25 million.
- It will target Series B through Series D rounds, typically as lead investor seeking board seats.
- The firm will chiefly focus on North America and Europe. Target industries span smart buildings and cities, food, agriculture, mobility, energy transition, and the enterprise and industrial sectors.
