Climate Insider Brief:
- Longbow Capital, a Calgary-based private equity firm, announced the initial closing of its Longbow Energy Transition Fund II with $150 million in commitments, targeting a total of $250 million. Key anchor investors include BDC Capital, TD Bank Group, and Caterpillar Ventures.
- The fund aims to invest in North American businesses that contribute to reducing carbon emissions and supporting the energy transition, such as VoltaGrid, a modular power generation company and its first investment.
- BDC Capital and TD Bank Group expressed confidence in Longbow’s experienced team and commitment to backing growth-stage businesses innovating in clean energy and sustainability.
CALGARY, Alberta – November 5, 2024 – Longbow Capital, a private equity investment manager based in Calgary, has marked a significant milestone with the initial closing of its Longbow Energy Transition Fund II, amassing $150 million in capital commitments. The fund, which targets a total of $250 million, has drawn support from top-tier institutional and family office investors, including BDC Capital, TD Bank Group, and Caterpillar Ventures as anchor backers.
Supporting the Energy Transition
With over 27 years of experience and approximately $1.5 billion in assets under management, Longbow Capital has established itself as a leading force in the Canadian energy transition sector. The new fund is designed to invest in North American companies that align with the broader shift toward sustainable and low-carbon energy solutions. It focuses on enterprises that are driving emissions reduction through innovative, efficient, and cost-effective technologies.
Longbow’s Managing Director, Tyson Birchall, emphasized the importance of seizing the moment amid transformative changes in the energy landscape. “We are grateful for the ongoing support of our existing investors and excited to build on the success we have had to date in our energy transition strategy,” Birchall said. He highlighted the growing power demand resulting from the electrification of homes and mobility, the onshoring of manufacturing, and data center development as critical drivers reshaping the sector. “We continue to see compelling opportunities to invest in businesses that are developing innovative approaches to support the decarbonization of our energy system,” he added.
Key Investment and Vision
The Fund has already made its first investment in VoltaGrid, a rapidly expanding company specializing in low-carbon, modular power generation. VoltaGrid serves industries including energy, mining, utilities, and data centers, aligning with Longbow’s goal to back scalable solutions that contribute to carbon reduction.
Art Robinson, another Managing Director at Longbow Capital, echoed Birchall’s sentiment. “This is an incredibly exciting time to be part of the energy transition. The shift in how energy is produced, consumed, and financed is transformative, and it presents a significant long-term investment opportunity,” Robinson stated. “We are committed to supporting innovative solutions that drive this change and in the process help create significant, thriving enterprises.”
Backing From Prominent Investors
BDC Capital’s Senior Vice President of Fund Investments, Paula Cruickshank, expressed confidence in Longbow Capital’s team and strategy. “BDC is thrilled to renew its support for Longbow Capital with an anchor investment in its Longbow Energy Transition Fund II,” said Cruickshank. “With Longbow Capital’s experienced team at the helm, we are confident in their ability to empower innovative growth-stage businesses to address today’s environmental challenges, spearhead the transition to renewable energy, and foster a more sustainable, cleaner, and low-carbon future.”
TD Bank Group also highlighted its ongoing commitment to supporting energy innovation through the investment. Drew MacIntyre, Vice Chair at TD Securities, noted, “We are pleased to help support entrepreneurs on the front line of energy innovation through our investment in the Longbow Energy Transition Fund II. This investment forms part of TD Securities’ Principal Investing Strategy, established in September 2019, and is aligned with the TD Ready Commitment, the Bank’s corporate citizenship platform.”
A Strategic Path Forward
Longbow Capital’s latest venture underscores its dedication to identifying and nurturing high-potential, growth-stage companies that are reshaping the energy landscape. With robust backing from influential investors and a clear strategy focused on sustainability, Longbow is poised to leverage the opportunities created by increasing power demand and the shift toward clean energy.
About Longbow Capital
Founded in 1997, Longbow Capital has cemented its position as a major player in the Canadian private equity space, focusing on energy and power sector investments. The firm’s portfolio spans low-carbon energy solutions, energy and power production, infrastructure, services, and technology.
About BDC Capital
BDC Capital is the investment arm of BDC, Canada’s bank for entrepreneurs. Managing over $6 billion in assets, BDC Capital supports a wide range of firms, offering everything from seed investments to growth equity and fund investments.
Longbow Capital’s announcement reflects not just a commitment to its investors but to fostering the innovations necessary for a sustainable, low-carbon energy future.
Source: Longbow Capital
Featured Image: Credit: Longbow Capital
