Key Takeaways:
- ArcTern Ventures announces $335 million in commitments for Fund III, surpassing its original target of $300 million.
- The fund has attracted investments from major institutions like TD Bank Group, Allianz, and Credit Suisse Asset Management.
- ArcTern focuses on early growth-stage companies in North America and Europe, aiming to maximize greenhouse gas reduction.
- Fund III is registered under the EU’s Sustainable Finance Disclosure Regulations as an Article 9 fund.
- Investments will target sectors like renewable energy, clean mobility, and sustainable agriculture.
ArcTern Ventures Secures $335M In Commitment For Fund III
Over-Subscription Highlights ArcTern’s Market Position:
Toronto-based venture capital firm ArcTern Ventures, with a global presence including offices in San Francisco and Oslo, announced significant funding commitments totaling $335 million for its third fund (Fund III). The company commented that this amount exceeds the firm’s initial target of $300 million, underlining ArcTern’s standing as one of the world’s most significant dedicated climate tech venture funds.
Strategic Investor Base:
The fund has secured new investments from flagship limited partners such as TD Bank Group, Allianz, Church Pension Group, OPTrust, and Credit Suisse Asset Management, among other large institutional investors. This diverse and high-caliber investor base reflects confidence in ArcTern’s strategic direction and expertise in the climate tech sector.
Focused Investment Strategy:
ArcTern is dedicated to investing in the North American and European markets, focusing on selecting early growth-stage companies, especially those in Series A or B funding rounds, that demonstrate the highest potential for greenhouse gas (GHG) emission reduction. The firm conducts comprehensive environmental impact assessments before finalizing investments.
Regulatory Compliance and Impact Measurement:
To ensure transparency and accountability, ArcTern’s Fund III complies with the European Union’s Sustainable Finance Disclosure Regulations, registering as an Article 9 fund. The fund will be rigorously measured against specific climate impact criteria to quantify and verify the effectiveness of its investments in offsetting emissions.
Leadership Perspectives:
Murray McCaig, Co-Founder and Managing Partner at Arctern Ventures emphasizes investing in mission-driven founders in North America and Europe, focusing on scalable decarbonization solutions. Marc Faucher, Managing Partner, highlights the firm’s strategy of partnering with innovative startup teams across various geographies and industry verticals per their impact-driven mission. Drew MacIntyre, Vice Chair of TD Securities, expressed TD’s commitment to supporting energy innovation and sustainability through this investment.
Investment Areas:
ArcTern’s Fund III will channel its resources into technology companies specializing in renewable energy, clean mobility, circular economy, sustainable food and agriculture, and industrial decarbonization. This aligns with the firm’s overarching goal of fostering sustainable technological advancements.
